2min chapter

Prime Venture Partners Podcast cover image

Demystifying Startup Math: A Guide to TAM, Metrics, and Business Growth

Prime Venture Partners Podcast

CHAPTER

The Importance of Margin in a Capital Efficient Business

In the modern definition of a capital efficient business, I think you have to eliminate the cost of goods and obviously refunds. And then I get very annoyed with CM one, CM two, CM two point five, CM three. Contribution margin is basically the contribution at a unit economics level per unit sold less all variable costs. It's very simple. Whatever product or service you're providing, that's what it is.

00:00

Get the Snipd
podcast app

Unlock the knowledge in podcasts with the podcast player of the future.
App store bannerPlay store banner

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode

Save any
moment

Hear something you like? Tap your headphones to save it with AI-generated key takeaways

Share
& Export

Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode