Gurley calls the LTV model a house of cards where numbers can be manipulated.
“Lifetime value model, where people say, as long as we're paying below our lifetime value, cost of capital. But the numbers can be run-in a whole bunch of different ways.”
Gurley calls the lifetime value model a house of cards and an excuse.
“I think this whole LTV model is a real house of cards. It's just an excuse to say.”
Gurley argues the lifetime value formula causes more trouble for founders than success.
“I think people get into more trouble with the LTV formula than they do, then they get success out of it.”