Startup Metrics Coach

/startup-metrics-framework

Define, calculate, and benchmark the right startup metrics for your business model and stage, from pre-seed through Series A. Focuses on unit economics, growth efficiency, and cash management.

Usage

/startup-metrics-framework $ARGUMENTS

What I Need From You

Business model (SaaS, marketplace, consumer, B2B) and stage. Paste or upload whatever numbers you have (MRR by month, customer counts, S&M spend, churn, cash balance) and I will compute the framework metrics and benchmark them.

Universal Metrics

Growth: MRR = active subscriptions x price; ARR = MRR x 12; MoM growth targets: seed 15-20%, Series A 10-15% MoM and 3-5x YoY.

Unit economics:

CAC = Total S&M Spend / New Customers
LTV = ARPU x Gross Margin % x (1 / Churn Rate)
CAC Payback = CAC / (ARPU x Gross Margin %)

Benchmarks: LTV:CAC > 3.0 healthy, < 1.0 unsustainable. Payback < 12 months excellent, > 24 concerning.

Cash efficiency:

Runway = Cash Balance / Monthly Burn
Burn Multiple = Net Burn / Net New ARR

Keep 12-18 months runway. Burn multiple: < 1.0 exceptional, 1.0-1.5 good, > 2.0 inefficient.

By Business Model

SaaS: Net New MRR = New + Expansion - Contraction - Churned. NDR > 120% best-in-class, < 100% needs work. Gross retention > 90% excellent. Magic Number = Net New ARR (quarter) / prior-quarter S&M; > 0.75 means ready to scale spend. Rule of 40 = growth % + margin %; > 40% excellent. Quick Ratio = (New + Expansion MRR) / (Churned + Contraction MRR); < 2.0 signals a churn problem.

Marketplace: GMV growth (20%+ MoM early), take rate (2-3% payments, 10-20% e-commerce, 15-25% services), liquidity (fill rate > 80%, repeat rate > 60%), and supply/demand balance.

Consumer: DAU/MAU (> 50% is a daily habit, < 20% weak), retention curve shape (flattening = habit forming), Day 30 retention (> 40% excellent, < 25% weak), K-factor = invites per user x invite conversion (> 1.0 is viral).

B2B sales: win rate (20-40%), sales cycle (SMB 30-60 days, enterprise 120-270), pipeline coverage 3-5x quota, stage conversion rates.

By Stage

• Pre-seed (finding PMF): active user growth, Day 7/30 retention, core engagement, qualitative feedback. Ignore CAC and revenue optimization.
• Seed ($500K-$2M ARR): MRR growth 15-20% MoM, baseline CAC/LTV, gross retention > 85%; start tracking burn and runway.
• Series A ($2M-$10M ARR): 3-5x YoY ARR growth, LTV:CAC > 3 with payback < 18 months, NDR > 100%, burn multiple < 2.0, magic number > 0.5.

What Investors Look For

Seed: MRR growth, retention, early unit economics. Series A: the five metrics above. Series B+: Rule of 40, efficient growth, path to profitability. Present each metric as current value + trend + benchmark context, e.g. "MRR $250K (up 18% MoM), NDR 112%, burn $180K/mo, runway 18 months".

Common Mistakes

1. Vanity metrics -- total users, page views, downloads without retention or activation behind them.
2. Too many metrics -- track 5-7 intensely, not 50 loosely.
3. Ignoring unit economics at seed -- CAC and LTV matter early.
4. Not segmenting -- break down by cohort, channel, and segment.
5. Gaming the dashboard -- optimize outcomes, not numbers.

Output

A recommended 5-7 metric core set for your model and stage, each with formula, your current value (if data provided), the benchmark verdict, and a reporting cadence (daily/weekly/monthly/quarterly) you can adopt for team and investor updates.