A SPAC (special purpose acquisition company) is a shell company that raises IPO capital to acquire a private company within 18 to 24 months. Also called a "blank-check company," the SPAC merges with its target so the target becomes publicly traded without going through a traditional IPO, or liquidates and returns capital to investors if no acquisition is completed. SPACs have existed for decades but exploded in 2020 to 2021 before collapsing sharply, and now occupy a smaller niche than at peak.
The mechanic, simplified: a SPAC sponsor (typically a well-known executive, investor, or operator) forms a shell company and IPOs it, raising capital from public investors who buy "units" (typically $10 each) consisting of one share and a fracti...
Lifetime value (LTV) is the total gross profit a customer is expected to generate over the time they remain a customer. It's used alongside customer acquisition cost (CAC) to evaluate whether a business can profitably scale. The metric must be calculated on gross margin, not revenue, because only gross-margin dollars are available to repay CAC and fund the rest of the business.
The standard SaaS formula is LTV equals average revenue per account (ARPA) times gross margin percent, divided by monthly customer churn rate. A SaaS company with $200 monthly ARPA, 80 percent gross margin, and 2 percent monthly churn has an LTV of ($200 x 0.80) / 0.02 = $8,000. This formula assumes a steady-state churn rate and works reasonably ...
A fractional executive is an experienced executive who works part-time across multiple companies, providing senior leadership without the cost of a full-time hire. Sometimes called part-time CFO/CTO/CMO, fractional VP, or fractional leader. Engagements typically run 10-30 hours per week per client. The model is increasingly common for CFO, CTO, CMO, and VP-level roles where the work is genuinely part-time at certain company stages and where the company can't justify a full-time hire yet but needs senior-level expertise. It is a structural alternative to full-time executive hiring that fits specific situations well and other situations poorly.
The fractional model:
The competitive landscape slide is the pitch-deck slide naming the alternatives a customer might choose instead of the startup, with the startup's positioning against each. It covers direct competitors, indirect competitors, and the status-quo workaround, designed to acknowledge real competition honestly and demonstrate that the founders understand the market they're entering. It is the slide where the "we have no competition" mistake gets made most often, and where investors most quickly lose confidence in founders who haven't done the work.
The two common formats and their failure modes: the 2x2 grid (place competitors on an X-Y axis where you're conveniently in the desirable upper-right; the trap is choosing axes th...
ARR (Annual Recurring Revenue) is the annualized snapshot of a subscription business's recurring revenue at a point in time, summing annualized active subscriptions. A $5,000/year customer contributes $5,000 to ARR; a $500/month customer contributes $6,000. ARR is the primary growth and valuation metric for SaaS and subscription companies because it provides a forward-looking view of revenue assuming no churn or expansion, unlike GAAP revenue which is backward-looking. The metric is so important that SaaS valuations are typically expressed as multiples of ARR (e.g., "5x ARR" or "20x ARR" depending on growth rate and market conditions). It is the metric reported most prominently in investor materials and board updates.
The ARR calculatio...
A strategic investor is an investor whose primary value to the company extends beyond financial capital. The value includes strategic relationships, distribution channels, technology integration, market access, talent, or industry expertise. Strategic investors are typically corporate venture arms (CVCs), large industry players, sovereign wealth funds, or family offices with specific industry focus. The tradeoff is potentially valuable strategic benefits in exchange for typically different relationship dynamics (information sharing concerns, potential competitive conflicts, slower decision-making) compared to traditional financial investors. Distinct from CVC specifically (which is a structural category) but overlapping; ...
ICP (Ideal Customer Profile) is the codified description of the company or person most likely to buy your product, succeed with it, and retain. It applies to the type of company (B2B) or person (B2C) most likely to buy, succeed, retain, expand, and refer, used to focus sales targeting, marketing messaging, product investment, and pricing on the highest-leverage segment rather than chasing every possible buyer. It is distinct from a buyer persona: ICP describes the account or household; the persona describes the individual decision-maker inside it.
A useful B2B ICP includes firmographic attributes (industry, employee count, revenue range, geography), technographic attributes (current stack, integrations, data maturity), behavioral attrib...
Unit economics is the per-customer profit profile of a business, expressed most commonly as customer lifetime value (LTV) versus customer acquisition cost (CAC). It's used to determine whether a business can profitably acquire customers at scale. It answers the deciding question of any growth-stage startup: does this company make money on each customer, and if it doesn't yet, will it.
The core ratio is LTV divided by CAC. The widely cited benchmark, popularized by David Skok and others in SaaS investing circles, is that LTV:CAC should be at least 3x for a healthy growth-stage business. A 1x ratio means the company recovers acquisition cost but creates no margin. A 2x ratio is marginal. A 3x ratio means each customer creates t...
A Qualified Purchaser (QP) is a higher-tier SEC investor classification defined under the Investment Company Act of 1940. It requires substantially more wealth than accredited investor status (typically $5 million+ in investments for individuals, $25 million+ for entities), and is used as the eligibility threshold for participation in private investment funds structured under Section 3(c)(7). The structure allows funds to have more LPs than the 100-investor limit of Section 3(c)(1) funds. It is the higher wealth gate that distinguishes participation in larger private investment funds from participation in smaller venture funds.
The thresholds:
Fiduciary duty is the legal obligation that directors and officers owe to a corporation and its shareholders to act with care, loyalty, and good faith. The foundation of corporate governance, it is the basis on which directors and officers can be personally sued for breach of duty. Under Delaware corporate law, the two primary duties are the duty of care (informed decision-making) and the duty of loyalty (acting in the corporation's best interest, not personal interest). It is one of the most-important and least-understood concepts in startup governance, and the legal doctrine that determines how board members behave when shareholder and company interests conflict.
The two primary fiduciary duties under Delaware corporate law...