2. Seed Investments
Series A and beyond
VENTURRA FUND I VENTURRA DISCOVERY
$200k-$500k
$2m-$5m
Coverage: Southeast Asia
Sectors: Agnostic
Venturra Capital is an early-stage VC firm investing in the leading
high-growth tech companies in Southeast Asia.
3. Venturra Capital Investment Overview
60
Current
Portfolio
Companies
7
Consumer
Internet Healthcare Education
Financial
Services
Venturra Capital Current
Portfolio Origin
Venturra Office
# of Investments under
Venturra Fund I
Legend:
Outside of the region
# of Investment under
Venturra Discovery
Countries of
Portfolio
Origin
5. You need to clearly identify how you’re planning to earn revenue
Research monetization plan of similar companies in the space, and learn from their experience on
which method would work best
Don’t be afraid to experiment on new monetization scheme.
Identify your monetization scheme, some examples include:
1. Price Mark Up. Common for typical B2C
2. Commission Fee. Common for Marketplace Models.
3. Subscription Fee. Common for software and virtual goods.
4. Service Fee. Common for brokerage & service business.
Etc….
FOR INTERNAL DISCUSSION PURPOSES ONLY
STRICTLY PRIVATE AND CONFIDENTIAL
5
Pricing - Monetization Plan
7. Budget your marketing spend properly for Target Segment
Identify the appropriate Marketing Channels
Identify Sales and Marketing Staff Salaries
FOR INTERNAL DISCUSSION PURPOSES ONLY
STRICTLY PRIVATE AND CONFIDENTIAL
7
Customer Acquisition Cost (CAC), Lifetime Value (LTV), and LTV/CAC Ratio
CAC is the Cost of Acquiring a Paying Customer
LTV/CAC Ratio
If your LTV / CAC equals 1x, your business
will never enjoy operating leverage (make
money) because the gross margin is only
enough to pay for the variable expenses
associated with obtaining that revenue,
and not the fixed expenses of the
business. In other words, the gross margin
only covers the S&M expenses associated
with obtaining that margin (CAC), and not
the rent, overhead or back-office salaries.
LTV = [AOV x Purchase Frequency] x [Expected Customer
Lifetime Length]
8. FOR INTERNAL DISCUSSION PURPOSES ONLY
STRICTLY PRIVATE AND CONFIDENTIAL
8
Customer Acquisition Cost (CAC), Lifetime Value (LTV), and LTV/CAC Ratio
LTV/CAC Ratio
1:1 You will lose money the more you
sell
3:1 Good ratio (industry benchmark)
4:1 Indicates a good business model
5:1 Likely under-investing in marketing
9. Understanding Gross Profit & Contribution Profit (Loss)
Contribution Margin = Net Revenue − Variable Costs
How
Take a traditional income statement and
recategorize all costs as fixed or variable.
This is not as straightforward as it sounds,
because it’s not always clear which costs
fall into each category
If the price of your product is $20 and the unit variable cost is $4, then the unit
contribution margin is $16.
Applicability
Price a product or service
Structure sales commissions.
Compare products and determine which
to keep and which to get rid of.
Determining the Unit Economics of your
Business
Gross Margin = Revenue − Cost of Revenue (Cost of Goods Sold)
10. Understanding Repurchase Rates
Repurchase rate is the percentage rate of a cohort having
placed another order within a certain period of time.
What is Repurchase Rate?
“Retention comes from having a great idea and a great product to back up
that idea, and great product market fit.“
~ Alex Schultz, VP of Growth at Facebook
Why it is important to think about your Customer Retention
Rate
11. Another method to analyze the viability of your
business is to conduct a CAC Breakeven
How long does it take to breakeven
on customer acquisition cost?
CAC
Profit contribution
Repurchase rate
Ideal: Recovery Rate is <12 months
12. FOR INTERNAL DISCUSSION PURPOSES ONLY
STRICTLY PRIVATE AND CONFIDENTIAL
12
Software-as-a-Service Key Metrics
13. E-Commerce/Marketplace
Key Metrics
Pricing & Monetization
• Take rate: margin on GMV
• Advertising: charge brands/retailers for
boosting traffic
• Platform fee: charge to retailers
• Logistics charges: in-house logistics
(TikiNow, Amazon)
• Fees: matching fees % on the marketplace
• Payments/financing: invoice financing or
factoring
• Gross Merchandise Value
• Profit Contribution (After COGS, Transaction Fees,
Logistics, Marketing, and other Opex)
• Average order value and purchase frequency
• Marketing Efficiency: GMV/Marketing Cost (ideally
<5%)
• Retention Rate: both supply and demand side
retention
• CAC Payback Period: ideally < 12 month to payback
cost of acquisition
• LTV:CAC: ideally equal or more than 3
14. Thank you!
Partner with us
www.venturra.com
Email : val@venturra.com
Linkedin: Venturra Discovery
Instagram: @VenturraDiscovery
