Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Startup metrics - Matt Dyor of Payboard


Published on

Matt Dyor of Payboard presents on Metrics that Matter for startups at Startup Next in Seattle

Published in: Business
  • Be the first to comment

Startup metrics - Matt Dyor of Payboard

  1. 1. Payboard Conversion Automation Startup Metrics Matt Dyor Payboard Co-Founder and CEO
  2. 2. Payboard Conversion Automation Startup Moneyball Matt Dyor Payboard Co-Founder and CEO
  3. 3. Startup Metrics Background
  4. 4. Make Websites Intelligent
  5. 5. Core Metrics • Market Metrics – Size of Market – Growth of Market – Competition • Startup Metrics – Validation – Leading – Operational
  6. 6. What is a metric? An objective measurement of the present health and future potential of a business. What is your goal? What kind of business are you building? Consulting, Bootstrap, VC-backed?
  7. 7. Market Metrics • Market Metrics – Size of Market: more than a billion, less than a trillion – Growth of Market: growth is provable or believed to be true – Competitive Landscape: who currently owns this market • Market (alone) rarely interests investors: – huge market + easy-to-build opportunity = incumbents will win – small market + easy-to-build opportunity = lifestyle business – huge market + a hard-to-build solution = why you? • Odds are, none of us can defend why our team is uniquely positioned to dominate a market, so we have to rely on startups metrics.
  8. 8. Startup Metrics • Validation Metrics – is there a pain worth solving? • Leading Metrics – is the startup making progress towards a commercially meaningful solution? • Operational Metrics – what is the present health and future potential of the startup? Let’s go in reverse order
  9. 9. Startup Metrics - Operational • Customer Acquisition Cost: – incremental cost to acquire a customer. If you say nothing, you are not credible. Go invest some money on Google Ad Words. • Lifetime Value: – Monthly revenue x average lifetime (in months) • Average lifetime is 1/monthly churn rate. • The longer, the harder to defend. 3% monthly churn / 3 years is ballpark. • Months to Recover CAC: – Should be less than 12 (eg-if you charge $100/month, CAC should be less than $1200) • Lifetime Value / CAC: – 3 or higher for SaaS • Operating Costs: – Mostly people – how many of them and what rate. $7k-$10k/developer/month. – Funds raised need to cover anticipated costs for 12-18 months. • Initially, you will have very sparse data on any of these metrics. – Either get to positive operational metrics, or come up with credible leading metrics. – Leading metrics require a larger market (higher risk/less proof).
  10. 10. Startup Metrics - Leading • What do you do before you have meaningful operational metrics? – Make something up. • Needs to be close to operational metrics, and give investors confidence that there is a positive relationship – Awesome for Payboard: number of influenced purchases increasing per month. – OK for Payboard: number of people streaming data to Payboard. – Weak for Payboard: number of page views and signups. • Needs to be up and to the right – every business needs traction. – You need to be able to influence these metrics. – Gives you clarity on what to prioritize. – Can be down and to the right:)
  11. 11. Startup Metrics - Validation • Measurements of customer discovery (conversations) that support operational metrics. • Talk to 100 potential customers before you build. • Validate that they *say* that: 1) they have a problem; and 2) they would be willing to pay you to fix it. – Do not get them to buy off on your solution. – Do get an understanding of how they purchase other tools/services. – Your goal is to find the customer segment that is most hungry for a solution. • Nobody cares about your validation metrics-they are for your team.
  12. 12. We are allT emamaking it up Questions? Skype matt.dyor! …so make up something awesome!
  13. 13. Data = Payboard’s Raw Material # of user clicks / month is growing.
  14. 14. Integration is Getting Easier It takes 5 minutes to get started.