customer acquisition financing
About us<br>
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The Customer Value Finance ( CVF FUND ltd - https://cvffund.com/ ) Fund is a specialized financing entity designed for series A and series B startups. We provide non-collateralised financing. We focuse specifically on optimizing customer acquisition spending by treating Customer Acquisition Costs (CAC) as capital expenditures (CapEx), rather than operating expenses. The Fund introduces a financial metric called EBITCAC (EBITDA plus CAC), providing clearer visibility into true profitability and growth potential.<br>
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The Core Thesis<br>
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Late-stage tech companies underinvest in growth<br>
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Pressured to show short-term EBITDA<br>
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Constrained by cash reserves - https://www.dictionary.com/browse/cash%20reserves <br>
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Ignore high ROI opportunities in CAC<br>
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Solution: Use EBITCAC, not EBITDA<br>
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"Think of CAC as CapEx for tech."<br>
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Outcome: Drives better long-term equity value<br>
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Why EBITDA Fails Tech<br>
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EBITDA misses the point in tech:<br>
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No interest → low/no debt<br>
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No tax → operating losses<br>
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No assets → minimal D&A<br>
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EBITDA ≠ actual cash generation in tech<br>
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✔️ EBITCAC reflects:<br>
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Recurring revenue<br>
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Cash generation after CAC ROI<br>
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CAC as CapEx<br>
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Industrial Companies:<br>
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Invest in machines (CapEx)<br>
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Assets = financing = long-term payoff<br>
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Tech Companies:<br>
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Invest in CAC (ads, sales, marketing)<br>
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But expense it on P&L