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Startup Benchmarks

VC Cafe

In SaaS the main benchmarks being measured are revenue growth, sales efficiency (unit economics), churn and burn rate. Example of Baremetrics revenue per user benchmarks. cohort retention curves that flatten (stickiness) actives/reg > 25% (validates TAM). Software as a Service (Saas) benchmarks.

B2C 141
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Is the Lean Startup concept of MVP dead?

VC Cafe

In fact, they were screaming at them to dramatically reduce their burn rates. In a capital scarce environment following the Dot Com crash, startups needed to do more with less and survive long enough to generate revenue. The fundamentals (unit economics/ margins, CAC>LTV, the importance of retention) are more important now.

Lean 214
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From Fat to Fit: Startups Must Navigate Back to Fundamentals to Achieve Long-term Success 

The Startup Magazine

Initially buoyed by the allure of rapid expansion, this company boasted year-over-year growth rates between 300% to 500%, primarily fueled by low initial annual contract values (ACV) but with the possibility of expansions within the first 12 months. Notable examples such as WeWork and Uber illustrate the perils and potential of this era.

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Which Fundraising Round Should You Skip?

View from Seed

As a first time founder, having a few million dollars in the bank after a successful seed raise may seem like a huge amount of capital, and it’s easy to lose discipline around your burn rate.

Dilution 149
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Critical Key Performance Indicators (KPIs) for Founders

Up and Running

Many startups focus on growth (instead of profits) and often need to track KPIs that may be different from those used by established businesses: Burn rate : indicates the company’s negative cash flow or how quickly it’s spending money. Activation rate: measures how many visitors are engaging with your website or app. Sales KPIs.

Founder 71
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Should Startups Care About Profitability?

Both Sides of the Table

70–80% of the costs of most startups are employee costs so what you’re really talking about when a company is unprofitable is that they are growing their staff ahead of their revenue. They don’t want high burn rates but they will never fund slow growth. The Nature of Revenue Matters Of course revenue alone won’t tell you enough.

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An Alternative to Board Decks Some Seed VCs Actually Prefer

View from Seed

Examples of housekeeping include the following list, though not every item will appear every time: Finance: Cash out date, burn rate, 409A valuation, cap table, common/preferred stock dashboard. However, these are important updates for your board to know. The seed stage is all about traction.