Published a new essay: The red flags and magic numbers that investors look for in your startup’s metrics – 80 slide deck included!

This was a deck that I created on my (longish) interview process with @a16z. It was a long path, starting with meeting folks at the firm 10 years ago. But the purpose of the deck was to explain how I would use my superpower in an investing context
Here's what I explain in the deck. As investors (whether angel or VC) we're often confronted with an up-and-to-the-right graph. Is it going to go up? Or down?
One solution to forecast these growth curves is the Growth Accounting Framework, where you add up New+Reactivated and subtract churned users. In each time period that gives you the difference in monthly actives.
The problem with this is that it's a lagging metric, not a leading one. We need to go one level deeper and look at the underlying loops that drive these numbers, to understand the quality.
For acquisition loops, I go through a number of different models. SEO+UGC, Viral, and Paid marketing.
In the deck, I break down how to get more granular on each step, and case studies for how to optimize the loop.d
From a metrics standpoint, it's important to analyze the acquisition mix, the quality of the signups, and the platform dependencies. In the deck, I talk through a bunch of the red flags I'm looking for.
I go through the same discussion for the Engagement Loop too. Examples, Upside, Metrics, and Forecasting.
Two kinds of engagement loops- Social Feedback and Content Personalization. There's obviously many others, but these are two that are particularly useful to think about.
I use examples from Pinterest, Twitter, and Uber. Both increasing the activation of users to get them pinning more, how to build a network, and unblocking users who've lost their password.
From a metrics perspective on engagement loops, I'll look at cohort retention curves, frequency analyses, and analyzing notifications too. I don't mention it, but the Power User Curve is important too: https://t.co/kdgO8PIspq
Once you have the Acquisition and Engagement Loops mapped out, and the potential upside, then you can build a forecast for MAUs. This lets you answer the questions you want to answer - where will this curve go?
Hope you enjoy the deck! Again, here's the link:
Thank you @bbalfour @ShaunMClowes @onecaseman @bubba @aatif_awan and the other folks who helped me along the way.

More from Startups

You May Also Like

राम-रावण युद्ध समाप्त हो चुका था। जगत को त्रास देने वाला रावण अपने कुटुम्ब सहित नष्ट हो चुका था।श्रीराम का राज्याभिषेक हुआ और अयोध्या नरेश श्री राम के नेतृत्व में चारों दिशाओं में शन्ति थी।
अंगद को विदा करते समय राम रो पड़े थे ।हनुमान को विदा करने की शक्ति तो राम में थी ही नहीं ।

माता सीता भी हनुमान को पुत्रवत मानती थी। अत: हनुमान अयोध्या में ही रह गए ।राम दिनभर दरबार में, शासन व्यवस्था में व्यस्त रहते थे। संध्या को जब शासकीय कार्यों में छूट मिलती तो गुरु और माताओं का कुशल-मंगल पूछ अपने कक्ष में जाते थे। परंतु हनुमान जी हमेशा उनके पीछे-पीछे ही रहते थे ।

उनकी उपस्थिति में ही सारा परिवार बहुत देर तक जी भर बातें करता ।फिर भरत को ध्यान आया कि भैया-भाभी को भी एकांत मिलना चाहिए ।उर्मिला को देख भी उनके मन में हूक उठती थी कि इस पतिव्रता को भी अपने पति का सानिध्य चाहिए ।

एक दिन भरत ने हनुमान जी से कहा,"हे पवनपुत्र! सीता भाभी को राम भैया के साथ एकांत में रहने का भी अधिकार प्राप्त है ।क्या आपको उनके माथे पर सिन्दूर नहीं दिखता?इसलिए संध्या पश्चात आप राम भैया को कृप्या अकेला छोड़ दिया करें "।
ये सुनकर हनुमान आश्चर्यचकित रह गए और सीता माता के पास गए ।

माता से हनुमान ने पूछा,"माता आप अपने माथे पर सिन्दूर क्यों लगाती हैं।" यह सुनकर सीता माता बोलीं,"स्त्री अपने माथे पर सिन्दूर लगाती है तो उसके पति की आयु में वृद्धि होती है और वह स्वस्थ रहते हैं "। फिर हनुमान जी प्रभु राम के पास गए ।