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a16z Podcast: Why paid marketing sucks, Network effects, Viral Growth, and more

Andrew Chen

One growth accounting equation that’s often thrown around is that you know your incremental — your net — MAUs, right? And you can start to draw conclusions, sort of a natural A/B test in order to do that. Sonal: It’s like counting impressions and being able to sell that to advertisers.

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The red flags and magic numbers that investors look for in your startup’s metrics – 80 slide deck included!

Andrew Chen

Of course, as an investor you can’t run A/B tests or analyze results directly, but you can form hypotheses, ideate, and apply the same type of thinking. There’s a couple common frameworks to try to understand this, and one is the Growth Accounting Framework. How do you predict the future? Is it working and will it sustain?

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