Retention is all you need
Every week, I have the same conversation with founders seeking Series A funding:
Founder: "Look at our growth! 10x increase in users, significant ARR growth. We're in the top right corner compared to competitors. Very low CAC."
Me: "Impressive. Tell me about your retention. What activities keep your customers?"
Founder: (evasively) "Our growth has been phenomenal..."
Me: "Any examples of regrettable churn? How did that impact your thinking?"
Founder: (diverts back to metrics) "We're really proud of our growth numbers..."
Me: "You have a team option. What drives folks to invite others and join your product?"
Founder: (again) "Our team growth metrics are really strong..."
Me: "Which features drive adoption, and how does that shape your product strategy?"
Founder: (visibly tired) "Well, our growth has been impressive..."
Coming from a product background, I'm primarily trying to understand what makes a product tick. What keeps users coming back? Why do they stay? Growth is undeniably important, but without retention, it's just a temporary spike—no different than a TechCrunch bump.
Sure, rapid growth can be intoxicating. You can grow virally for a bit. You can even raise funds on that growth. But without a retentive product, you're building on sand.
There's a famous quote about founder focus. I'd amend it: "First-time founders focus on product, second-time founders on distribution AND retention." Because in the end, retention is all you need.