Why startups can’t afford to ignore customer retention

Venture-backed companies must walk the line between fast growth and efficient growth. Even as VCs value high-quality revenue, companies are still held to a minimum growth rate. We think of this threshold as the “Mendoza Line,” a baseball term we’ve adapted to track the minimum growth needed to get access to venture funding. Above this line, startups are generally attractive to investors and even have a good chance for a strong exit.

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