# TechTaffy

tech:

CLV, or Customer Lifetime Value, represents the total net profit a company can expect to earn from a customer over the entire duration of their relationship.

CLV is an important measure for businesses as it helps them understand the long-term value of each customer and make informed decisions about customer acquisition, retention, and marketing spend.

## How do you calculate CLV?

A simple way to calculate the CLV could be to use numbers for the average revenue per customer, the average customer lifespan, and the company’s profit margin.

CLV = (Average Revenue per Customer x Average Customer Lifespan) x Profit Margin

For example, if a customer spends an average of \$500 per year, stays with the company for an average of 5 years, and the company has a profit margin of 20%, the CLV would be:

CLV = (\$500 x 5) x 0.20 = \$500

Understanding the CLV allows businesses to allocate marketing budget more effectively by focusing on customer segments with higher CLV, evaluate customer acquisition strategies and adjust them based on the cost of acquiring new customers compared to their expected CLV, and prioritize customer retention efforts (retaining high-CLV customers can have a significant impact on a company’s profitability).

### Tembo raises \$14M

Cincinnati, Ohio-based Tembo, a Postgres managed service provider, has raised \$14 million in a Series A funding round.

### Raspberry Pi is now a public company — TC

Raspberry Pi priced its IPO on the London Stock Exchange on Tuesday morning at £2.80 per share, valuing it at £542 million, or \$690 million at today’s exchange rate, writes Romain Dillet.

### AlphaSense raises \$650M

AlphaSense, a market intelligence and search platform, has raised \$650 million in funding, co-led by Viking Global Investors and BDT & MSD Partners.

### Elon Musk’s xAI raises \$6B to take on OpenAI — VentureBeat

Confirming reports from April, the series B investment comes from the participation of multiple known venture capital firms and investors, including Valor Equity Partners, Vy Capital, Andreessen Horowitz (A16z), Sequoia Capital, Fidelity Management & Research Company, Prince Alwaleed Bin Talal and Kingdom Holding, writes Shubham Sharma.

### Capgemini partners with DARPA to explore quantum computing for carbon capture

Capgemini Government Solutions has launched a new initiative with the Defense Advanced Research Projects Agency (DARPA) to investigate quantum computing's potential in carbon capture.