In 2018, as Spotify prepared to go public, this author noted “Spotify is making a common and dangerous mistake in their LTV calculation.” He uses this to make the point that, “Investors and entrepreneurs should shift their attention towards a […]
There are some interesting concepts noted here, including “LTV Is Everything, LTV Is Nothing: Meet Your Cash Multiplier.” I also am fond of the notice at the top: “This article was written a week prior to the coronavirus pandemic.” | learn more
Bill Gurley of Benchmark wrote this post in 2012, and it rings true today. LTV is a very useful model for thinking about and evaluating a business, but it can be dangerous when misused. | learn more