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Strategy & Portfolio

Growth Hacking

Last updated

Quick Answer

Rapid, data-driven experimentation to find scalable, low-cost user acquisition strategies — associated with early-stage consumer tech companies.

Growth hacking is a philosophy and set of tactics focused on rapidly identifying and scaling user or customer acquisition strategies using creative, low-cost, data-driven experiments. The term was coined by Sean Ellis in 2010. Classic growth hacking examples: Dropbox's referral program (give storage for referrals), Airbnb's Craigslist integration (cross-post listings automatically), Hotmail's email footer link. Growth hackers run rapid A/B tests across acquisition channels, retention tactics, and product features to find scalable growth vectors. For VCs, evidence of organic, viral, or remarkably efficient growth is one of the most exciting signals — it suggests the company can scale without proportionally increasing CAC.

Frequently Asked Questions

What is Growth Hacking in venture capital?

Growth hacking is a philosophy and set of tactics focused on rapidly identifying and scaling user or customer acquisition strategies using creative, low-cost, data-driven experiments. The term was coined by Sean Ellis in 2010.

Why is Growth Hacking important for startups?

Understanding Growth Hacking is critical for founders navigating the fundraising process. It directly impacts deal terms, valuation, and the relationship between founders and investors.

What category does Growth Hacking fall under in VC?

Growth Hacking falls under the strategy category in venture capital. This area covers concepts related to the strategic approaches to portfolio construction and management.

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