Source: BetaShop blog, Dec 2011
(Note to entrepreneurs: You need to really know your customer acquisition metrics and customer lifetime value equations in order to create a viable model. So much of your model will depend on how much you have to spend to acquire members and then the percentage of them that buy from you over time. You need to be deep in the details on cohort analysis and payback periods for all investments you plan to make).
From a fundraising standpoint, providing access to the RJ data basically said to the VC’s, “here we are, here’s the data, we’ve got nothing to hide, take a look and decide for yourself if you want to pursue investing in Fab.” Effectively, we turned the pitching on its head. Since the RJ data updates several times per day directly from our database, it was many times more powerful than providing powerpoints and excel spreadsheets. This was the real stuff, auto-updating! And, since RJ enables all the data to be downloaded into excel, the analysts at the VC firms were able to do all of their own analysis on the front end of the investment process.