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Startup metrics - Matt Dyor of Payboard

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

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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.

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