The Startup Metrics That VCs Want to See

Nate Morris

From working with hundreds of customers and users, we get a lot of questions around ‘what kind of information should I be including updates to my investors?’

We break this down to 4 different sections.

  1. Financial
  2. Key Growth Metric
  3. Industry/Market Standards
  4. Investor/Advisor/Board suggested

1. Financial

– Money money money. Finances are the lifeblood of a company, you can tell how well a company is growing, how smart they are spending, how healthy they are, or how many more months they have left before they disappear.

-Look at any standard Cash Balance Sheet and Income Statement, you should have the major line items of this for your investors.

-Depending on what kind of product you sell, there could be some important ones to highlight like gross margin or wages or marketing expenses. Always highlight the items that affect the company the most.

2. Key Growth Metric

– There are lots of things that accrue a company’s growth, but there is normally just one or two numbers that you look at for showing your growth and success. We talk about how to find your ‘Most-Valuable-Metric’ and the best way to tell your company’s story in The Ultimate Guide to Startup Data Distribution

-This can be a numeric or monetary amount, and it changes for each company/business plan/industry. For SaaS, this could be MRR, for a messaging app, it could be number of users, average messages per user.

Main Point: This metric(s) is(are) they key segment(s) that needs to grow to continue your success to Unicorn Ranch.

3. Industry/Market Standards

Don’t reinvent the wheel. When you’re growing a company in a specific industry or market, there are always benchmark numbers and stats people talk about. Use these for your own reporting so you can have your stakeholders look at the market, their experiences or expertise, and your company (aka – make them work for that equity they bought/earned). For SaaS (I’m in SaaS so I talk SaaS), this would be items like Churn Rate, Average MRR Value, Total ARR, Cost per Acquisition, Lifetime Value, etc.

4. Investor/Advisor/Board Suggested

– Your key stakeholders (investors, advisors, board members), if you picked them right, will have experience, knowledge, connections, and more to help you become even more successful. From speaking with them, they’ll probably find a few metrics not already covered that they want you to focus on or track. This only helps leverage them in the future and allow them to be proactive towards that ten-figure exit.

Checkout Visible’s list of Most-Valuable-Metric and see if there is something you have been missing.

Enjoy Your Day, Go Create Something, and Make Someone Smile

Nate Morris

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Structured data. The holy grail of business intelligence. Structured data unlocks a realm of possibilities, from setting benchmarks to enhancing decision-making processes. Yet, in the venture capital landscape, accessing reliable, structured data remains a formidable challenge. This is precisely why we created the Visible AI Inbox. With unique features like automated metric detection and file parsing, the Visible AI Inbox stands out as a pioneering solution for portfolio monitoring. Discover how it can transform your data strategy by meeting with our team. Turning email into insights We believe that investors should spend time sourcing new deals and helping founders, not manually copying and pasting data from email 🙂. The AI Inbox helps aggregate insights that exist siloed in data, files, and updates across a venture firm. Updates from founders often stay stuck in one team member's inbox because it's too time-consuming to extract and enter the data and files into a more centralized repository. Visible AI Inbox makes this possible within seconds. Requests + AI Inbox = A Complete Picture The addition of the AI Inbox continues to advance our market-leading portfolio monitoring solution. The pairing of Requests + the AI Inbox will give investors a holistic view of portfolio company performance across a fund. Visible continues to be the most founder-friendly tool on the market. We’ll continue to build tools in existing workflows where both founders and investors live every day. How Does it Work? Visible AI Inbox works in three simple steps. Forward emails to a custom AI inbox email address Visible AI automatically maps data and files to portfolio companies Investors can review and approve content before it is saved From there, dashboards, tear sheets, and reports are all automatically updated on Visible. Learn more about how Visible AI Inbox can streamline workflows at your firm by meeting with our team. FAQ Will this be available on all plans? Visible AI Inbox is only available on certain plans. Get in touch with your dedicated Investor Success Manager if you want to explore adding this to your account. How is Visible addressing privacy and security with Visible AI Inbox? No data submitted through the OpenAI API is used to train OpenAI models or improve OpenAI’s service offering. Visible AI Inbox leverages OpenAI GPT 4 and proprietary prompts to extract data in a structured way and import it into Visible. If you’re uncomfortable with utilizing OpenAI to optimize your account, you can choose not to utilize this feature. Please feel free to reach out to our team with any further questions. These processes adhere to the guidelines outlined in Visible’s privacy policy and SOC 2 certification. Visible AI Inbox Best Practices We'll be sharing best practices for how investors are leveraging Visible AI Inbox in our bi-weekly newsletter, the Visible Edge. Stay in the loop with best practices and product updates by subscribing below:
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