Most of the times a VC fund is considering an investment in a startup it will ask for a cohort analysis. Such an analysis is comparing different groups of users throughout time. As a company is building its product, it is constantly testing new strategies. Customers that start using an application in the first week after its launch will have a completely different experience from users that start using an application later in time. Cohort analysis aims to help entrepreneurs (and potential investors) to understand whether a company really improves throughout time.
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