Startup Economics 101
Faculty
Andreas Jaegle
Vice President Operations, HitFox Group
Course length
Duration
Total hours
Credits
Language
Course type
Fee for single course
Fee for degree students
Skills you’ll learn
Overview
The enduring success of a startup (or any business in general) eventually boils down to the soundness of the underlying economics of its business model. This highly participatory course gives students an introduction into the relevant financial metrics and key performance indicators (KPIs) that entrepreneurs should be watching closely - their (potential) investors most definitely will!
We will look at key elements of a startup’s profit & loss account, and how one derives from it an assessment of the all-important Unit Economics, Customer Lifetime Value (CLV), and Customer Acquisition Costs (CAC), and why their relation is important. We will touch on important concepts such as retention and customer cohorts, and how these impact the economics. Along the way, we will discuss the strategic choices entrepreneurs and functional startup leaders face, when they look for ways to improve the overall economics of their startup.
This course is a practitioner’s guide rather than a theoretical course, and it will draw extensively on the instructor’s personal experience in running and advising startups.
Learning highlights
- Students will acquire an appreciation for the basic economic fundamentals of any startup they may choose to get involved with. Students will also learn about some of the financial metrics and key performance indicators that investors will be watching closely when deciding to provide (further) funding to their venture.
- In particular, students will learn about the relevance of certain elements of the profit & loss account (top-down view), and how these connect with the Unit Economics (bottom-up view). Students will understand the basics of customer acquisition and the associated costs (CAC).
- An introduction to the concept of customer cohorts will further the students’ understanding of how to arrive at Customer Lifetime Value (CLV), and how this can help them assess and communicate the overall viability of the underlying business model.
- Students will further develop a basic appreciation of other (softer) KPIs that investors may look for, and in what situations other metrics and KPIs may carry greater importance.
Course outline
5 classes
Course Overview
Profit & Loss Basics
Accounting Caveats
Monthly (net) burn
Sales
Levels of Profit Contribution
Unit Economics
Customer Acquisition Cost (CAC)
Marketing Channels
Customer Cohorts
CLV vs. CAC (“The Startup Formula”)
Growth vs. Profitability
Other KPIs to Watch
Group Presentations (tbc)
Course Wrap-Up and General Q&A
Prerequisites
This course is one of three in a wholistic series.
Students that have already taken MSL-111 and those with prior experience with HTML, CSS, and Javascript building simple web pages will be good candidates for this module.
Andreas is a digital entrepreneur, executive and advisor. Currently on sabbatical leave, Andreas is advising startups, company builders, and executives on strategic, operational, fund raising, and financial matters.
Between 2015 and 2018, Andreas spent over three years as Vice President of Global Venture Development with Rocket Internet SE, working with the CEO Oliver Samwer and the Group Managing Director Alexander Kudlich. During this time, he served as interim Global Co-Founder of Foodora (now part of Delivery Hero), during which time he founded and ran operations in Denmark, Sweden, Norway and Finland, and helped expand the business from less than ten employees serving one city to more than 250 employees operating in twelve countries. Subsequently, he joined the Executive Team of Helpling (a Rocket Internet venture) and supported the two co-founders during a major consolidation and restructuring phase. In late 2015, Andreas founded Everdine, an award-winning subscription service for premium ready-meals with offices in Berlin and London, for which he raised 5.5 EURm in seed financing.
See full profileApply for this course
Startup Economics 101
by Andreas Jaegle
Total hours
15 Hours
Dates
Mar 25 - Mar 29, 2019
Fee for single course
€500
Fee for degree students
€250
How to secure your spot
Complete the form below to kickstart your application
Schedule your Harbour.Space interview
If successful, get ready to join us on campus
FAQ
Will I receive a certificate after completion?
Yes. Upon completion of the course, you will receive a certificate signed by the director of the program your course belonged to.
Do I need a visa?
This depends on your case. Please check with the Spanish or Thai consulate in your country of residence about visa requirements. We will do our part to provide you with the necessary documents, such as the Certificate of Enrollment.
Can I get a discount?
Yes. The easiest way to enroll in a course at a discounted price is to register for multiple courses. Registering for multiple courses will reduce the cost per individual course. Please ask the Admissions Office for more information about the other kinds of discounts we offer and what you can do to receive one.