Oct 13, 2023 — article

Are SaaS metrics game-changing for both founders and VCs?

Studio republic fot K Kq WNMQ4 unsplash

Short answer? Yes.

By Mari Wachelke

A startup's journey is a lot like co-authoring a book. You start with the first chapter of your story, and gradually surround yourself with other characters: your team, investors, advisors, and partners. Together, you co-write your startup's narrative. For SaaS startups in particular, this complex orchestration is simplified when everyone tunes into some key metrics. These metrics - focused on growth, profitability and customers - serve as a common language, facilitating clearer communication and more effective action.

Aligning everyone on these metric can turn your startups' narrative from just another story into a bestseller.

This week, RunwayFBU's Senior Partner Sagar Chandna and Investment Manager Peder Hjermann took the stage at Europower to present precisely this. They emphasized the significance of the following metrics:

📊 Growth: “Keep an eye on Monthly Recurring Revenue (MRR) and its growth rate.”

💰 Profitability: “Track the Rule of 40, Gross Margin, and Customer Acquisition Cost (CAC). And at later stage startups, also your CLTV.”

👨‍💻 Customers: “Monitor Churn and Net Revenue Retention (NRR).”

While these metrics may vary based on each startup's unique sector and goals, their balanced and segmented use lays the groundwork for a compelling and successful narrative. Individual teams within a startup will often have their own metrics, related to their functions. But for the founders and investors, having a strong grip on these metrics, often crafts the most gripping and profitable story.

We at RunwayFBU are constantly working to support ambitious entrepreneurs and great solutions. Read more here

Peder Sagar Metrics

Be the first to receive our latest news