Startup Metrics: What Investors Want to See
The essential metrics investors look for when evaluating startups. Learn which KPIs matter most and how to track them effectively.
Startup Metrics: What Investors Want to See
You're preparing for an investor meeting.
Your pitch deck looks great. Your story is compelling. Your demo is polished.
Then comes the question:
"What are your metrics?"
Silence. Sweat. Panic.
If you've been there, you're not alone. Most early-stage founders don't know which numbers actually matter to investors.
Here's the breakdown.
Why Metrics Matter to Investors
Investors see hundreds of pitches. They've heard every story.
What they can't argue with? Numbers.
Metrics tell investors:
→ Is this business actually growing?
→ Is the growth sustainable?
→ Is the unit economics viable?
→ Is this team executing?
A great story with bad metrics = pass.
An okay story with great metrics = let's talk.
The Core Metrics (Every Startup)
1. Monthly Recurring Revenue (MRR)
What it is: Predictable revenue that comes in every month
Why investors care: Shows business stability and predictability
How to calculate: Sum of all monthly subscription revenue
What's good:
- Early stage: Any MRR is good
- Seed: $10K-50K MRR
- Series A: $100K+ MRR
What to show:
- Current MRR
- MRR growth rate (month-over-month)
- MRR trend over 6-12 months
2. Growth Rate
What it is: How fast you're growing, typically month-over-month
Why investors care: Growth = potential for big returns
How to calculate: (This Month - Last Month) / Last Month × 100
What's good:
- 10-15% MoM: Solid
- 15-20% MoM: Strong
- 20%+ MoM: Exceptional
What to show:
- MoM growth rate
- Trend over time (is growth accelerating or decelerating?)
- What's driving the growth
3. Customer Acquisition Cost (CAC)
What it is: How much you spend to get one customer
Why investors care: Shows if your growth is efficient
How to calculate: Total Sales & Marketing Spend / New Customers Acquired
What's good:
- Depends on your LTV (see next metric)
- Lower is generally better
- Trending down is a great sign
What to show:
- Current CAC
- CAC by channel
- CAC trend over time
4. Customer Lifetime Value (LTV)
What it is: Total revenue you'll get from one customer
Why investors care: Shows long-term value of your customers
How to calculate: Average Revenue per Customer × Average Customer Lifespan
What's good:
- LTV should be at least 3x CAC
- Higher is better
- Growing LTV = product-market fit
What to show:
- Current LTV
- LTV by customer segment
- LTV trend
5. LTV:CAC Ratio
What it is: How much value you get for each dollar spent acquiring customers
Why investors care: The single best indicator of unit economics
How to calculate: LTV / CAC
What's good:
- Below 1:1 = You're losing money on every customer
- 1:1 to 3:1 = Needs improvement
- 3:1 to 5:1 = Healthy
- Above 5:1 = Could invest more in growth
What to show:
- Current ratio
- Trend over time
- Breakdown by channel or segment
6. Churn Rate
What it is: Percentage of customers who cancel each month
Why investors care: High churn = leaky bucket (hard to grow)
How to calculate: Customers Lost / Total Customers × 100
What's good:
- Below 2% monthly: Excellent
- 2-5% monthly: Average
- Above 5% monthly: Concerning
What to show:
- Monthly churn rate
- Churn by cohort
- Reasons for churn (if you know)
7. Burn Rate & Runway
What it is: How much cash you spend monthly, and how long until you run out
Why investors care: Determines how urgently you need funding
How to calculate:
- Burn Rate = Monthly Expenses - Monthly Revenue
- Runway = Cash in Bank / Burn Rate
What's good:
- 12+ months runway when fundraising
- 18+ months after raising
What to show:
- Current monthly burn
- Current runway
- Path to profitability (if applicable)
Metrics by Stage
Pre-Seed / Idea Stage
Focus on:
- User signups or waitlist
- Engagement metrics
- Early feedback/NPS
- Speed of iteration
Investors know you don't have revenue yet. Show momentum and learning.
Seed Stage
Focus on:
- MRR and growth rate
- Number of paying customers
- Early retention data
- CAC (even if rough)
Show you've found something people will pay for.
Series A
Focus on:
- MRR ($100K+ typically)
- Growth rate (consistent 15%+ MoM)
- LTV:CAC ratio (3:1 or better)
- Churn rate (low and stable)
- Clear path to scale
Show you've figured out the model and are ready to pour gas on the fire.
How to Present Metrics
1. Lead with the Headline
Don't bury the good news.
Bad: "So if we look at slide 47, you'll see our MRR..."
Good: "We're at $85K MRR, growing 18% month-over-month for the past 6 months."
2. Show Trends, Not Snapshots
One month means nothing. Show 6-12 months of data.
Investors want to see:
- Direction (up or down)
- Consistency (steady or volatile)
- Acceleration (speeding up or slowing down)
3. Be Honest About Weaknesses
Investors will find the problems. Better to address them first.
"Our churn is at 6%, which is higher than we'd like. Here's what we're doing about it..."
4. Know Your Numbers Cold
If you have to look up basic metrics, you've lost credibility.
Know your MRR, growth rate, CAC, and churn by heart.
5. Compare to Benchmarks
"Our LTV:CAC is 4:1" is good.
"Our LTV:CAC is 4:1, compared to industry average of 2.5:1" is better.
Common Metric Mistakes
Mistake 1: Vanity Metrics
Bad: "We have 50,000 signups!"
Good: "We have 2,000 paying customers with 3% MoM growth."
Signups, downloads, and page views don't pay bills.
Mistake 2: Cherry-Picking Timeframes
Bad: Showing only your best month
Good: Showing consistent 6-12 month trends
Investors have seen every trick. Don't play games.
Mistake 3: Not Knowing Your Numbers
Bad: "I'll have to get back to you on that..."
Good: Knowing every key metric instantly
If you don't know your numbers, how can you run the business?
Mistake 4: Hiding Bad News
Bad: Omitting churn rate because it's high
Good: Acknowledging issues and showing how you're addressing them
Investors invest in founders who face reality.
Mistake 5: Too Many Metrics
Bad: 30-slide appendix with every possible metric
Good: 5-7 key metrics that tell a clear story
More data ≠ more convincing.
Building Your Metrics Dashboard
What to Include
One page with:
- MRR + growth rate
- Customer count + growth
- LTV and CAC
- Churn rate
- Cash position / runway
Update Frequency
- Weekly: Check trends
- Monthly: Deep analysis
- Quarterly: Strategic review
Tools
Manual: Spreadsheet (works for early stage)
Automated: Upload your data to analytics tools, get metrics calculated automatically
The less time you spend calculating, the more time you spend improving.
Preparing for Investor Questions
Questions You'll Get
- "What's your MRR and growth rate?"
- "What's your CAC and LTV?"
- "What's your churn?"
- "What's your runway?"
- "How do you see these metrics evolving?"
How to Prepare
- Know current numbers by heart
- Know trends for past 6 months
- Know your targets for next 6-12 months
- Have explanations for any anomalies
Key Takeaways
- MRR and growth rate are king — show consistent, strong growth
- LTV:CAC ratio proves unit economics — aim for 3:1+
- Churn rate shows product-market fit — keep it low
- Trends matter more than snapshots — show 6-12 months
- Know your numbers cold — hesitation kills credibility
- Be honest about weaknesses — investors respect self-awareness
Need to track your startup metrics? Try InstantInsight free — upload your data, get MRR, growth rates, and trends calculated automatically in 60 seconds.
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