ENT 404 · Unit 2 of 6
Unit Economics and Venture Metrics
Entrepreneurial Finance, SAFEs and Cap Tables
Start unit · 4 lessons →Learning objectives
- Stress-test unit economics and contribution margin
- Apply "Unit Economics and Venture Metrics" to a real venture decision
- Contribute to your Cap table scenario workbook deliverable
Unit overview
| # | Lesson | Core idea |
|---|---|---|
| 1 | Understanding Unit Economics and Venture Metrics | Core frameworks for this unit |
| 2 | How Unit Economics and Venture Metrics Works in Practice | Core frameworks for this unit |
| 3 | Evaluating Trade-offs in Unit Economics and Venture Metrics | Core frameworks for this unit |
| 4 | Unit Economics and Venture Metrics: Case Analysis and Recommendations | Core frameworks for this unit |
Complete all four lessons, then finish unit assessments on this page.
Unit assessment
Complete each section below. Score 80%+ on the quiz to finish this unit's assessment.
Exercises
Apply what you learned in this unit with structured practice.
Deliverable
300–500 word analysis document saved to your portfolio under ENT 404.
Rubric
- • Framework applied correctly (not just named)
- • Specific evidence from a real example
- • Clear recommendation with tradeoffs acknowledged
- • Professional writing with source citation
Deliverable
Problem solutions + 150-word reflection in your ENT 404 workbook.
Rubric
- • Attempted all practice items before checking answers
- • Honest reflection on errors
- • Identifies a specific review action
Case analysis
Analyze a case using frameworks from this unit.
Deliverable
2-page case write-up in your portfolio.
Rubric
- • Case facts are accurate and sourced
- • Analysis uses unit frameworks explicitly
- • Recommendation is justified with tradeoffs
- • Risks are specific, not generic
Knowledge quiz
Check your understanding before marking the unit complete.
1. RelayOps has $96,000 ACV per customer and $8,000 monthly recognized revenue per customer. With 14 customers, what is MRR?
2. RelayOps blended CAC is $18,000 and gross margin is 78%. Monthly gross profit per customer is $8,000 × 78% = $6,240. Approximate CAC payback in months?
3. If RelayOps loses 2 of 14 customers in a quarter (14.3% logo churn) but remaining customers expand, ending MRR is flat. What metric captures expansion offsetting churn?
4. RelayOps LTV using simple formula: monthly gross profit $6,240 / monthly churn 2% equals approximate customer lifetime months of:
5. LTV:CAC ratio for RelayOps with LTV ≈ $312,000 and CAC $18,000 is approximately:
6. RelayOps adds 2 customers in a month at $8,000 MRR each but churns 1. Net new MRR for the month is:
7. Increasing sales spend 40% raises new logos 20% but lengthens payback from 2.9 to 4.5 months. What trade-off does Lesson 3 emphasize?
8. RelayOps board memo recommends delaying enterprise sales hire because burn multiple exceeds 2.5×. Which input is NOT required for that metric?