Subscription League
Pollen VC - A guide to financing your user acquisition with Martin Macmillan
Feb 1, 2023
Martin Macmillan, CEO of Pollen VC, discusses a new way to finance app businesses called 'revolving line of credit' funding. He explains how it works and how Pollen VC's funding model differs from others. He also discusses the benefits of 'Clean Room Accounting' strategy for managing app finances and the financial forecasting calculator for subscription apps. Martin shares his experience transitioning from fixed income trading to creating Pollen VC and explores various funding options for startups. He emphasizes the importance of separate bank accounts for tracking user acquisition progress and managing cash flow. The podcast also covers the significance of breaking even on ad spend and explores the resources available for app developers on Pollen VC's website.
23:33
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Quick takeaways
- Understanding LTV curves is crucial for success in subscription apps, allowing app publishers to confidently invest in user acquisition for scaling their business.
- Startups should assess their funding needs based on their stage, market potential, and risk appetite, considering options like equity capital in the early stages and low-risk debt financing in later stages.
Deep dives
The Importance of LTV Curves in Subscription Apps
Understanding LTV (lifetime value) curves is crucial for success in subscription apps. The speaker draws a parallel between trading fixed income instruments and user acquisition, emphasizing the importance of analyzing LTV curves rather than yield curves. By accurately modeling LTV and establishing positive unit economics, app publishers can confidently invest in user acquisition for scaling their business.
