Why is unit economics the single most critical system for evaluating fintech investments?

Nigel Morris
Replied byNigel Morris

Co-founder & Managing Partner at QED Investors

Niche: Finance
Revenue: Not Publicly Disclosed/month
Location: Alexandria, Virginia, United States
Started: 2007

You can only build a profitable business one customer at a time. Evaluating overall ARR or EBITDA is secondary to measuring the horizontal economics of customer acquisition cost and net present value. A startup only achieves true vertical profitability through the cumulative addition of strong unit economics.

0
From the Full Interview

This answer is part of a full interview with Nigel Morris, Co-founder & Managing Partner at QED Investors.

Share this Answer

Found this insight valuable? Share it with your network to help others learn from Nigel Morris's experience.

Cite This Answer

Use this answer in your research, article, or academic work