Hi everyone:
When looking at a high growth company that's supposed to eventually convert growth to strong cash flow profile (because growth indicates strong market fit/customer need, etc.), how do you usually go about diligencing it? Would love to hear about your thought processes!
Thanks!
I would imagine looking at unit economics would be helpful
Most important drivers imo: - Fixed vs var costs --> economies of scale (linked to box economics mentioned before) - Churn rates --> do you require marketing spend to attract new customers - Barriers to entry/competitiveness of product
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