Economic matters

Sources:

In an episode of the podcast This Week in Startups, Adam Nelson discusses critical aspects of understanding unit economics, particularly when preparing to pitch to investors. He highlights that growth alone does not suffice—it must be profitable growth. Key metrics include the contribution margin and customer lifetime value, as these are central to acquiring and serving customers efficiently, and ultimately impacting overall revenue. Knowing these metrics allows businesses to make informed decisions about customer acquisition costs and the returns on those investments, which is essential for attracting venture capital 1.

For more details on unit economics and their role in sustainable business growth, you can learn more from the episode titled "E846: Adam Nelson Social Capital "What it Takes to Raise a Series A in 2018" @ Founder.University" from This Week in Startups .

Profitable Growth Matters

Adam emphasizes the importance of understanding unit economics and including them in your investor pitch. Knowing your contribution margin and customer lifetime value is crucial for effectively acquiring and serving customers, and ultimately driving revenue.

This Week in Startups

E846: Adam Nelson Social Capital "What it Takes to Raise a Series A in 2018" @ Founder.University
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