GTM Sauce

Ladder · B2C · strength training app

Borrow up to 80% of ad spend, repaid from each month's new users

Used by Ladder; 10% yearly interest, no equity given up; only for big proven apps

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What they did

General Catalyst's growth fund finances up to 80% of a month's user acquisition spend (e.g. $8M of $10M in January), tracks that cohort, and is repaid from that cohort's earnings at ~10% annualized interest, however long it takes (e.g. 3 years). Non-dilutive and not a recourse loan. Available only to much larger, proven apps. Ladder used it.
“There is an interesting financing product that I became aware of just in the last year when Ladder used it is General Catalyst Growth Fund.”
David Barnard
“if in January you spend $10 million, they'll finance eight million of that and then they track that January cohort and they get repaid”
David Barnard

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