Lifetime Value (LTV)

Definition

LTV is the total gross profit a customer generates over their entire relationship with the company, driven by revenue per customer, gross margin, and retention.

Wie es im Fundraising vorkommt

Paired with CAC, LTV defines whether growth is worth buying: an LTV-to-CAC ratio of 3 or more is the standard SaaS benchmark.

Häufig gestellte Fragen

How do I calculate LTV for an early startup?

With limited history, use average revenue per account, gross margin, and observed churn to estimate; label it clearly as an estimate, since investors will.

Why use gross profit rather than revenue in LTV?

Because only margin funds the business; revenue-based LTV flatters low-margin models.

Round Funded Ressourcen

Verwandte Begriffe

Customer Acquisition Cost (CAC)Churn RateUnit Economics

Setzen Sie diesen Begriff ein

Definitionen gewinnen nur dann Verhandlungen, wenn Sie sich in einer befinden. Finden Sie die Investoren, die Ihre Phase finanzieren, und beginnen Sie das Gespräch.

Datenbank der Investoren durchsuchen