Unit Economics: The Key To A Sustainable Business Is Recurring Revenues
The Equidam Weekly is a curated collection of readings delivered weekly to bring you the most informative articles on growth companies, early stage funding and generally on how to build businesses in the motherland.
Unit Economics For Startups
Whenever you present an investment proposition to investors, they are going to break it down to unit economics metrics. Having positive unit economics metrics means having high potential and immediately turns your business into a viable investment opportunity.
Here we make a summary of the most commonly used unit economic metrics
On Developments
Akash Sharma of Chargebee explains why the business of jumping on to the next big thing in haste, isn’t a good business to be in in “Mobile-first SaaS, Slow Hunches, and The Perils of Trend-Hopping”
Jeff Jordan of A16Z outlines 5 key points to consider when thinking about getting a financial officer on board in “Hire A CFO”
Mary Meeker of Kleiner Perkins Caufield & Byers reports that global smartphone growth and internet growth are slowing down in “2017 Internet Trends Report”
Edd Wilder-James of SV Data Science thinks the future is not in voice but in an integrated data cloud with strong AI capabilities in “Sorry, but the future isn’t voice, either”
Albert Wenger of Union Square Ventures predicts that there is a crypto bubble coming and gives advice on how to put yourself in a position to remain involved in the long run in “Some Lessons I Learned from the Dotcom Bubble for the Coming Crypto Bubble”
On Growth
Sam Altman of Y Combinator and Reid Hoffman of Greylock Partners discuss scaling Y Combinator and building Y Continuity in “How to Scale Teams, Culture, and Companies”
Clement Vouillon of PointNine Capital says that keeping PMF will take a lot of effort before you scale in “Product /Market Fit is Like Walking On a Slackline”
Tomasz Tunguz of Redpoint Ventures claims that for a business to prosper over a larger period of time, management needs to diversify the company’s product portfolio in “Your Startup’s Three Horizons”
Mark Suster of Upfront Ventures says that a degree of skepticism, critical thinking and understanding data-biases are always in order in “Why You Shouldn’t Be Fooled by Your Own Expertise”
Rob Go of NextView Ventures says that companies with less runway often make better decisions in “The Curse of Too Much Runway“
Jessica Livingston of Y Combinator discusses cofounder disputes and not making what people want in “The Two Most Common Reasons Why Startups Fail”
Jeremy Stanley, Udi Nir & Guissu Baier of Instacart claim that a transparent and trustworthy compensation takes effort but it’s beneficial for the company in the long-run in “How Instacart Uses Data to Craft A Bespoke Comp Strategy”
Bryce Roberts of OATV outlines 2 distinct scenarios where VC funding is the optimal approach to building a business in “Real Businesses”
Connect Deeper
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Originally published at www.equidam.com on June 5, 2017.
