Growth with Alex Schultz (How to Start a Startup 2014: Lecture 6)

TL;DR

Retention is the single most important driver of growth; a cohort-based retention curve that asymptotes parallel to the x‑axis signals product‑market fit. Before scaling with growth tactics (virality, SEO, etc.), founders must ensure strong retention and a clear “north star” metric.

Key insights

• The retention curve (% monthly active vs. days from acquisition) must asymptote to a line parallel to the x‑axis for a viable business; a slope to the x‑axis means no product‑market fit.
• Startups should not have a separate growth team; the entire company is the growth team, and the CEO is the head of growth.
• Use dimensional reasoning (analogy to Geoffrey Taylor’s atomic‑bomb calculation) to ballpark a good retention rate for your vertical by comparing to total addressable market (e.g., internet users vs.