Startup Metrics Knowledge

Overview

This skill provides comprehensive guidance on startup metrics for SaaS and marketplace businesses. It covers metric definitions, calculation formulas, stage-appropriate benchmarks, and best practices for tracking and reporting.

SaaS Metrics Fundamentals

Revenue Metrics

Metric Formula Description

MRR Sum of monthly recurring revenue Core subscription revenue

ARR MRR × 12 Annualized recurring revenue

New MRR MRR from new customers Growth driver

Expansion MRR MRR from upgrades/upsells Land-and-expand signal

Churned MRR MRR lost from cancellations Retention indicator

Net New MRR New + Expansion - Churned Overall momentum

Growth Metrics

Metric Formula Good Great

MoM Growth (MRR₁ - MRR₀) / MRR₀ 10-15% 20%+

YoY Growth (ARR₁ - ARR₀) / ARR₀ 2x 3x

Net Revenue Retention (Starting MRR + Expansion - Churn) / Starting MRR 100-110% 120%+

Gross Revenue Retention (Starting MRR - Churn) / Starting MRR 85-90% 95%+

Logo Retention Customers retained / Starting customers 85-90% 95%+

Unit Economics

Metric Formula Target

CAC Sales & Marketing spend / New customers Varies by ACV

LTV ARPU × Gross Margin × (1/Churn Rate) 3x+ CAC

LTV:CAC Ratio LTV / CAC 3:1 to 5:1

CAC Payback CAC / (ARPU × Gross Margin) <18 months

Gross Margin (Revenue - COGS) / Revenue 70-80%+

Efficiency Metrics

Metric Formula Target

Burn Multiple Net Burn / Net New ARR <2x

Magic Number Net New ARR / Prior Q S&M Spend

0.75

Rule of 40 Growth Rate + Profit Margin

40%

Hype Ratio Implied ARR Multiple / Growth Rate <1x

Marketplace Metrics Fundamentals

Volume Metrics

Metric Formula Description

GMV Total transaction value Gross Merchandise Value

Net Revenue GMV × Take Rate Actual revenue

Take Rate Net Revenue / GMV Platform fee %

AOV GMV / Orders Average Order Value

Liquidity Metrics

Metric Formula Description

Search-to-Fill Rate Filled requests / Total searches Demand satisfaction

Time-to-Fill Avg time from request to fulfillment Efficiency

Buyer-to-Seller Ratio Active buyers / Active sellers Balance indicator

Repeat Rate Repeat transactions / Total Stickiness

Marketplace Health

Metric Description Target

Supply Liquidity % of listings with transactions

30%

Demand Liquidity % of searches resulting in purchase

20%

Supplier Concentration Top 10% supplier revenue share <40%

Cross-Side Network Effects Growth correlation between sides Positive

Burn & Runway

Burn Calculations

Metric Formula

Gross Burn Total monthly operating expenses

Net Burn Gross Burn - Revenue

Runway Cash Balance / Net Burn

Zero Cash Date Today + (Runway months)

Burn Benchmarks by Stage

Stage Acceptable Burn Multiple Target Runway

Pre-seed N/A 18-24 months

Seed <3x 18-24 months

Series A <2x 18-24 months

Series B <1.5x 24+ months

Series C+ <1x 24+ months

Stage-Appropriate Metrics

Pre-Seed / Seed

Focus on product-market fit signals:

• Engagement metrics (DAU/MAU, retention curves)

• Organic growth / word-of-mouth

• Early revenue or intent signals

• User feedback quality

Series A

Prove repeatable revenue:

• ARR: $1-3M

• Growth: 2-3x YoY

• Retention: >100% NRR

• Unit economics trending positive

Series B

Scale efficiently:

• ARR: $5-15M

• Growth: 2x+ YoY

• Burn multiple: <1.5x

• Clear path to profitability

Series C+

Efficient growth at scale:

• ARR: $20M+

• Rule of 40: >40%

• Strong unit economics

• Market leadership indicators

Cohort Analysis

Revenue Cohorts

Track how revenue from each customer cohort evolves over time:

• Month 0: Initial MRR

• Month 3, 6, 12: Retention %

• Expansion curve: Upsell trajectory

User Cohorts

Track engagement by signup cohort:

• Day 1, 7, 30 retention

• Feature adoption rates

• Conversion milestones

Additional Resources

Reference Files

For detailed guidance, consult:

• references/saas-metrics-guide.md

• Complete SaaS metrics with formulas and examples

• references/marketplace-metrics-guide.md

• Marketplace-specific metrics and benchmarks

• references/benchmarks-by-stage.md

• Stage and industry benchmarks

Example Files

Working examples in examples/ :

• example-metrics-snapshot.md

• Sample metrics report format

• example-cohort-analysis.md

• Cohort analysis template