Key Startup Metrics


When performing a company health check, there are certain metrics that are going to matter more than others. In our experience, having a good handle on key performance indicators (KPIs) as defined by easily measurable and widely understood metrics is critical to understanding and communicating the current status of a startup. 

In the attached article, Anu Hariharan of Y Combinator and Andreessen Horowitz partners - Frank Chen and Jeff Jordan - have identified 32 key startup metrics to “help investors gauge the health of a business when investing in it.”   This a great list for a new investor or an early stage entrepreneur seeking to show meaning in their data.  Knowing what each of these metrics means and how they may relate to a company creates an important, compelling communication channel for entrepreneurs and investors. 

When communicating between an investor and a startup, less is more.  Most companies will not track all of the metrics in this article.  Instead, two or three key metrics should be adequate for a company to quickly assess the health of its business, and also tell a story when management or investors are discussing the company’s current business and future opportunities.

Chapman and Company has a couple of key metrics that it reviews with virtually every early stage company with which it works.  

  1. Total Addressable Market (TAM)

  2. Recurring Revenue (RR) v. Total Revenue (TR)

  3. Churn

  4. Burn Rate

Take a look at these and the 28 others in the articles attached.  Thanks to the site for such strong startup content.


Laura Neeson