Matt Miller, a managing director at WaldenVC, has a great piece at the Sandhill Group Software blog.
“In the case of consumer Internet plays, the fundamentals are the cost to acquire a user, the number of interactions (or even better, the ‘take’ rate on subscriptions) we can get from a given consumer, the value to an advertiser of that consumer and the much-dreaded ‘churn’ rate. ”
“This is how we evaluate these businesses at Walden. If they look good on these metrics, then we turn to the barriers to entry. Some are technological, some team-based and some relationship-based. ”
“a company needs more than a great focus. It needs sustainable differentiators”