We encourage all of our portfolio companies to measure their churn rates by cohort. It is very revealing.
I saw this tweet by Liad this morning that shows startup churn by cohort.
No Cake Walk.
Not for Entrepreneurs.
Nor for Investors. pic.twitter.com/pRCLD3dfRy— Liad Shababo (@L1AD) July 26, 2017
I don’t know the source, but the data is sobering.
Some of the churn is companies getting sold. Some of the churn is companies getting profitable. But most of the churn is companies failing.
We have looked at our portfolio this way and our portfolio has performed much better than this. Some of that is selection. Some of that is support. And some of that is tenacity of the founders.
But, as Liad says in his tweet, startups are no cake walk.
