One of the first things that a venture capitalist looks for in assessing an investment opportunity is the revenue model of the business. More specifically, they are looking for the frequency of that revenue stream, and whether or not it is recurring and easily predictable. The rationale being investors prefer businesses that maximize the lifetime value of their consumers, and get maximum leverage and returns on the initial marketing cost of customer acquisition (which they are funding).
Read the rest of this post in The Next Web, which I guest authored this week.
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