WHY DO INVESTORS CARE SO MUCH ABOUT LTV:CAC?

Summary from the TLDR Founders newsletter

Your CAC is a reflection of your sales and marketing spend to acquire a new user. The higher your LTV:CAC ratio, the more efficient that spending is. The more efficient it is, the more capital you’ll have to fund research and development to improve your product and continuously increase the LTV of your users. It’s a flywheel, and investors use this to directly value your company’s future potential.