Is retention important
Does retention and usage matter for fundraising? Yes, it does.
Investors know that at the seed stage, it's too early for a long history of retention or usage data. However, any signs that your product or solution is resonating with the market can be a massive advantage. Show investors that users love, adopt, and actively use your product. This signals product-market fit, which indicates you've built something the market needs.
Good retention and usage stats de-risk the investment for VCs. They suggest that once funded, you'll likely scale successfully. If retention usage is poor, it's like a leaking bucket — money spent on customer acquisition goes to waste if users churn. So, highlight any positive retention and usage data you have. It's not critical if you don't have much yet, but do your best to present what you can. This will help build confidence and secure funding.
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