Preparing the Business Metrics

Investors are looking for a high-growth company with good unit economics.

In preparing for your fundraise you need to identify a handful of key metrics that show your growth story.

For the seed stage, you must have a run rate that is above 10K revenue per month.

For the growth stage, you need to be on a revenue rate of 50K per month or better.

Next, calculate your growth rate.  

You need to be doubling sales year over year.

Anything below 50% annual growth rate will not be seen as a high-growth company.

Recurring revenue is a priority because it shows predictable growth.

In fact, investors care more about predictability than the growth rate.

This factor more than any other drives your valuation.

Show your cost of customer acquisition and lifetime value in unit economic terms.

Choose three key numbers from the above to showcase in your presentation.

Don’t make them dig through your spreadsheets to find it.

Instead, pull out three numbers and show them.

 

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

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Thank you for joining your host Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.

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Disclaimer:
Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.