Demystifying Startup Math: A Guide to TAM, Metrics, and Business Growth

Shripati Acharya, Managing Partner Prime Venture Partners & Amit Somani Managing Partner Prime Venture Partners discuss BAD MATHS in the Startup world on this episode. Say goodbye to relying on "magical numbers" and instead focus on a thorough understanding of your market and customers for better results. We discuss key business metrics for growth, such as customer acquisition cost, campaign effectiveness, and churn calculations. We also stress the significance of segmentation, clear customer profiles, and willingness to pay for each segment. So don't miss this insightful episode full of valuable advice and perspectives to help you navigate the challenging world of startups.Listen to the podcast to learn about:01:30 - Common Pitfalls When Calculating TAM07:20 - What is a Good TAM from an Investor’s Perspective09:00 - Calculating TAM for a category-creating company11:00 - The Right Way to Calculate CAC18:30 - How to Think About Churn28:00 - Change the Question from LTV to Payback30:15 - Revenue, Retention & Cohort Based Analysis41:00 - Returns, Promotions, Discounts & Refunds46:00 - Averages Vs Medians50:00 - Smile Curve for SaaS CompaniesClick here to read the full transcriptEnjoyed the podcast? Please consider leaving a review and subscribe so you don't miss future episodes.Follow Prime Venture Partners:Twitter: https://twitter.com/Primevp_inLinkedIn: https://www.linkedin.com/company/primevp/This podcast is for you. Do let us know what you like about the podcast, what you don't like, the guests you'd like to have on the podcast and the topics you'd like us to cover in future episodes. Please share your feedback here: https://primevp.in/podcastfeedback