7 Essential Metrics Every Venture Capitalist Tracks
Understanding the key performance indicators that drive venture capital decisions is crucial for entrepreneurs seeking funding. These seven metrics have become the gold standard for evaluating startup potential and investment returns.
- Monthly Recurring Revenue (MRR) Growth Rate - The holy grail of SaaS metrics
- Customer Acquisition Cost (CAC) to Lifetime Value (LTV) Ratio - Must exceed 3:1
- Burn Rate and Runway - Critical for survival and scaling strategies
- Product-Market Fit Indicators - User retention and engagement scores
- Total Addressable Market (TAM) Size - Billion-dollar market opportunities
- Team Experience and Track Record - Previous exits and industry expertise
- Competitive Differentiation - Unique value propositions and moats