The size of your user base can create network effects, making your product more valuable as more people use it, which is a powerful advantage in today's market.

It's important to evaluate startups based on whether they have a small number of users who truly love the product, rather than just a large user base.

When evaluating early-stage investments, I consider the total addressable market, competitive dynamics, and whether people are already paying for the product.

If your startup has strong network effects, focusing on active users may be more important initially, with revenue becoming a focus later on. It's crucial to define what 'users' means for your startup, as it can vary significantly. For example, having 100 users could mean they just signed up or that they actively engage with your product daily for about 10 minutes. The latter is a much more valuable metric.

Measuring user attention is the best way to understand if you have product-market fit.

Asking if anyone loves your product can help clarify whether you're on the right track; being your first user can be a strong indicator of product viability.

Startups need to build a product that users love, focusing on a few passionate users rather than a large number of indifferent ones.

In advertising-based business models, having millions of active users is essential before brands will buy ads, making active users a reasonable proxy for revenue.

While revenue is often the best primary metric, some startups may focus on active users, especially if building a large audience is a prerequisite for monetization.