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.
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