Metrics to Raise a Series A

Continuing with the metrics theme from yesterday’s post Most Metrics Don’t Matter at the Beginning, a logical follow-up question is “what are the ideal metrics to raise a Series A?” EquityZen has a good post from last year on just this topic: The Metrics Required for Raising a Series A Round. Here are the key…

Most Metrics Don’t Matter at the Beginning

I love metrics. I love understanding all kinds of different aspects of the business. What’s improving? What’s declining? Only, for the first 12-18 months, most metrics don’t really matter. Yet, entrepreneurs are constantly fretting over them. Besides revenue and customer count, popular metrics like cost of customer acquisition and churn rate aren’t meaningful due to…

Financial Projections for Startups

Recently I saw another one of the dreaded financial charts in a startup’s executive summary: $0 revenue today and $25 million in revenue in year three. Whenever I see this, I immediately know that the CEO either a) doesn’t have any startup experience or b) hasn’t done the appropriate homework. Can a company go from…

SaaS Business Model and Metrics

David Skok has an excellent presentation over on Slideshare about the SaaS business model and metrics with the 3 Stages of a Startup. David’s blog, For Entrepreneurs, is one of the best out there for startups, especially Software-as-a-Service ones. Here are a few notes from the 85-slide SaaS business model and metrics deck: Conserve cash…

Uber Burning $750 Million in a Year

Recently, I heard an astounding piece of information: Uber is going to burn $750 million in capital this year as part of their expansion. Considering their most recent funding announcement of $1.2 billion in equity and $1.6 billion in debt, and the idea that most funding rounds are for 18-24 months of runway, the math…