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The Customer Acquisition Formula No One Talks About

The hidden mathematics of sustainable growth (backed by data startup data).

4 min readApr 10, 2025

Our CAC looked great until we scaled. Then everything fell apart.

When this unicorn founder shared their story at Y Combinator, it revealed a crucial truth: Most customer acquisition formulas don’t survive scaling.

After analyzing acquisition data from 300+ startups and interviewing dozens of growth leaders, we’ve uncovered a fundamental formula that predicts sustainable growth.

Even more interesting?

This formula explains why seemingly successful acquisition strategies often fail at scale.

The counter-intuitive discovery:

Lower CAC doesn’t always mean better unit economics.

Extremely low CAC often signals future scaling problems.

The Hidden Formula

(LTV × Growth Rate × Market Depth)

÷ (Acquisition Channel Saturation × Competition)

= Sustainable CAC

💡 Pro Tip: The best acquisition…

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Marshall Hargrave
Marshall Hargrave

Written by Marshall Hargrave

Serial entrepreneur. Finance, startups, investing. Catalyst-focused, event-driven. Hip-hop vigilante. On the quest for the best hot chicken.

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