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By Derek Pilling on January 22, 2014
When an investment passes our first-screen at Meritage Funds, the first deep-dive we typically do is on the unit economics of the business. Unit economics are the fundamental financial building blocks of a business. If you can pin down the unit economics, you can determine contribution margins, break-even points and perform ROI calculations all of which […]
Posted in Business | Tagged average customer lifetime, capital expenditures, churn, contribution margin, Economics, Growth Equity, Investment Selection, marginal operating costs, Raising Capital, unit economics
By Mark Suster on January 22, 2014
In my recent post “Why Am I So Lucky? Why You Need to Be Sure You’re Not the Sucker” I talked about how VCs (or other investors) get deals sent to them and how to interpret a referral. I tried to make a simple point: People have motives when they send you a deal. Sometimes […]