Customer Lifetime Value (CLV) is a pivotal metric in startup valuation, quantifying the total anticipated revenue a business can expect to generate from a single customer throughout their entire relationship. This methodology is crucial for understanding a company’s long-term profitability and sustainability, especially in its early stages. Developed by venture capitalist Dave Berkus, the CLV concept recognises that a customer’s value extends beyond initial transactions, encompassing repeat business, upsells, and referrals. Estimating CLV aids entrepreneurs and investors in assessing the viability of a business model, shaping marketing strategies, and guiding resource allocation. In the early stages of a startup, where customer acquisition costs and revenue patterns may be uncertain, CLV becomes instrumental. This methodology is particularly vital in industries with subscription-based models, e-commerce, and any sector where building lasting customer relationships is key. Accurately gauging CLV allows startups to tailor their strategies for sustainable growth, ensuring that customer acquisition efforts align with the long-term value they contribute to the business, ultimately influencing strategic decision-making and financial projections.