Metrics & Performance
Key Performance Indicator (KPI)
A measurable metric that tracks progress toward a critical business objective.
KPIs are the vital signs of a startup. Common VC-relevant KPIs include MRR growth, net retention, CAC payback, burn multiple, and logo churn. The right KPIs vary by stage: early-stage companies track engagement and PMF signals, while later stages track financial efficiency.
In Practice
The board established 5 KPIs for the quarter: MRR growth >15%/month, NRR >120%, CAC payback <12 months, gross margin >75%, and burn multiple <2x.
Why It Matters
KPIs provide objective performance measurement. VCs use them to compare companies, founders use them to manage the business, and boards use them to evaluate CEO performance.
VC Beast Take
You are what you measure. Choose the wrong KPIs and you'll optimize for the wrong outcomes. The best founders obsess over 3-5 KPIs, not 30.
Related Concepts
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