Anu Hariharan - Nine Business Models and the Metrics Investors Want

Summary

The video discusses the importance of tracking metrics in evaluating a startup's business model. The speaker introduces nine different business models and highlights the three key metrics to track for each model. The common mistakes to avoid when measuring these metrics are also discussed. Here are the key points:

The importance of tracking metrics in evaluating a startup's business model.
Nine different business models are discussed.
Three key metrics to track for each business model are highlighted.
Common mistakes to avoid when measuring these metrics are discussed.
The difference between bookings and revenue is explained.
The importance of measuring true recurring revenue and not including one-time payments.
The importance of measuring user retention and churn rate.
The significance of measuring gross MRR churn and the cost of acquiring users through paid mechanisms.
The importance of measuring compounded monthly growth rate since launch.
The need to measure cohort retention on a monthly basis for transaction-based businesses.
The importance of user retention as a cohort metric.
The key metrics for marketplace businesses, such as Gross Merchandise Volume (GMV) and compounded monthly growth rate.
The importance of paying attention to user retention and not just the volume of users.
The common mistake of blending organic and paid user acquisition numbers.
The key metrics for e-commerce and advertising businesses.
The importance of tracking daily active users, monthly active users, and percent logged in for user-based businesses.
The importance of defining what "active" means for your app.
The key metrics for hardware businesses, such as monthly revenue, growth rate, gross margin, and paid customer acquisition cost.
The need for honest measurement and the importance of absolute numbers and percentages.
The importance of tracking active users and their actions.
The need for short-term focus in finding product-market fit.
The importance of highlighting unique insights and potential for growth when talking to investors.
The need to track burn rate and ensure enough cash for the next six to nine months.
The significance of gross margin for ecommerce and consumer-related businesses.
The importance of focusing on acquiring users and monetization.
The need to measure the behavior of users and the paid acquisition cost in marketplaces.
The recommendation to start with small teams or pilots when targeting enterprise businesses.
The significance of customer acquisition costs (CAC) and the lifetime value of a customer (LTV).
The goal of having a 5x gap between LTV and CAC.

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