Rumen Iliev (Launchub), Metrics and KPIs for Your Fundraising and Reporting an Investor's Perspective
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The document discusses metrics and key performance indicators (KPIs) for fundraising and reporting for venture capital funds and the startups they invest in. It provides examples of KPIs used at different stages of a startup, from pre-product launch to scaling sales. These include metrics like customer engagement, annual contract value (ACV), churn rate, customer acquisition cost (CAC), lifetime value (LTV), sales cycles, and monthly recurring revenue (MRR) growth. It also discusses balancing unit economics between customer growth, cash burn, and recovering the costs of customer acquisition. The document emphasizes trends over snapshots and that KPI benchmarks can change as a startup adds larger customers.
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Rumen Iliev (Launchub), Metrics and KPIs for Your Fundraising and Reporting an Investor's Perspective
- 1. Metrics & KPIs FOR FUNDRAISING AND REPORTING
- 2. Launchub Ventures FUND BETA 2012 FUND I 2016 FUND II 2021 Fund B Fund 1 Fund 2 75M EUR 50M EUR 25M EUR 0M EUR >70M EUR INVESTMENTS TO DATE 300k-3M EUR INVESTMENT TICKET ~500M EUR ADDITIONAL ATTRACTED CAPITAL
- 3. Limitations We will talk about B2B We will talk about early stage (Seed and Series A) We will focus on SaaS model I will talk from my limited experience We will simplify and generalise
- 4. Fundraising Metrics Pre-product Product and first urest Paying customers Scaling Sales Credible Problem, Big Market, Great Team, Right Timing, Positive Feedback Engagement, Usage, NPS & Referrals, Stickiness, Killer feature ACV& Churn , Gross Margin, Payback period , Sales cycle, Customers growth ARR Growth, Gros Margin, LTC, CAC, Payback ACV, Burn Multiple, Win rate, Moat New MRR growth, ARPA, LTV/ CAC, Net RR, Tier 1 Growing KPIs Trends not stanpshots ACV and type of customers changes the benchmarks
- 5. Car Dealership Gross Margin % or Sales - Cost of Goods/Services Total revenues - Serv ers, SysAdmin/DevOps, Services, Customer Success etc Live Time Value or the signup to churn value of an average customer LTV=(ARPA*GrossMargin%)/Customer Churn Rate Payback period - average time to recover your CAC Payback Period = CAC/(ARPA*Gross Margin%) Crurn rate? Which churn rate?
- 6. Balancing Game of unit economics LTV = f(Churn Rate,Average MRR, G.Margin%) CAC= f(Sales&Marketing expenses ,New Customers, Sales Cycle) CAC Sales Complexity longer Sales Cycle => larger Marketing & Sales Costs
- 7. Balancing Game of growth&cash Months to recover CAC More Customer Growth <=> More cash Burn Months 1, 2,3,4,5,6,.12,...18...,24 $ -$ $
- 8. RUMEN , IF YOU STILL HAVE TIME YOU ARE DOING GREAT!!
- 9. MRR/ARR Customer growth ACV Churn & MRR Churn CAC/LTV Reporting Metrics&KPIs Net New MRR=NewMRR+Expansion-Churned MRR BIG PICTUE DETAILED PICTURE Net Revenue Retention =( MRRStart+Plus-Minus)/MRR Start Netc... But what about my NORTHSTART METRIC? 0 10 20 30 Item 1 Item 2 Item 3 Item 4
- 11. Tips on compiling KPIs Best SWs used to compile your KPIs Eamples of suboptimal sollutions: - We buy some cool SW for that... Examples of the worst possible sollution: - We will build an internal tool , because we are builders and it will be great, seriously.. in just 2 months... Usually the best option: - Maria - the financial analyst or Dan - the trainee who likes numbers + Excel or Sheets...