Entrepreneurial freedom. Aslanoba Capital. Formerly Romulus Capital, Stanford GSB, MIT.

  • TimB

    Hi there Cankut, just read one of your blog posts from a while back (2013) about unit economics. Would you have a view on how likely it is to overcome very negative unit economics for a start-up? For example, if it costs the start-up say $100 to acquire a customer today, and the current 12-month LTV is $15, have you ever seen examples where such a gap was eventually overcome? Assuming some positive trends (e.g. acquisition cost has come down a bit over time, LTV has gone up a bit) is such a wide gap a red flag for VCs, e.g. gap is viewed as insurmountable? Appreciate that there are many dependencies here but any thoughts would be welcome.