Customer Acquisition Value

How much money did you have to spend to get a customer to buy from you? The sum you had to spend in research , marketing capital, setting up your pages and profiles and keeping going well, etc. There are a lot of expenses involved with obtaining a company. Understanding this value helps to estimate how much to invest on getting a company going forward.

 In the approach and review phase of venture capital companies to start-ups, the CAC and LTV ratios are of great importance. They show venture capital firms such as Accel Partners, Bessemer Venture Partners or Matrix Partners the efficiency of the start-up business model.

 

 

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