Startup Funding Espresso – Key Metrics by Stage

Key Metrics by Stage

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Investors use metrics to understand the performance of the startup.

Here’s a list of key metrics by stage:

Pre-seed.  User engagement with the prototype.

Since there’s no revenue-generating product, look at how often and how long the customer engages with the prototype.

Seed.  Initial revenue traction and cash spend

Track month-over-month growth rates and how much of the revenue is recurring.

Look at the burn rates of the company to see how much runway they have.

Seed+ Continuing revenue traction and more efficient use of capital.

Startups often raise an additional round after the seed raise.

The funds continue to grow the revenue, and the company should see a lower burn rate.

Series A. Revenue run rate with an increase in retention.

The company should be finding product market fit, and so more revenue should come from retention.

Series B.  Revenue run rate with a greater increase in revenue than in cost.

The company should continue to grow the business, but the costs should flatten or decrease on a unit economic level.

Consider these metrics in reviewing a startup.

 

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

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