Early-Stage Startup Metrics Investors Consider

To accelerate business, founder Early-stage startups usually raise funds for investors, both angel or venture capital. Studying previous startup experiences, there are several approaches that are usually taken to successfully pocket investment funds pre seed or seed funding. First, they can “sell” the experience or vision founder accompanied by a potential market size that will be worked on through the developed products/services.

Second, this is a more measurable approach, namely presenting business achievements to investors. Of course the context is market acceptance of minimum viable product (MVP) which has been launched; to show that what has been done has been achieved product-market fit. Here founder need to use appropriate metrics to describe the business situation in phase early adoption. These statistics can be a provision for investors to see the potential of startups in the future when capital is injected for growth.

DailySocial have talked to several representatives venture capital to ask about the metrics they usually see when meeting early-stage startups seeking funding. First, we chatted with Principal Indogen Capital Kevin Chandra. He said that the metrics would largely depend on the business model adopted by the startup.

"For B2B, where the sales cycle tends to move much more slowly, we tend to look at sales efficiencies based on channel in the early phase. Then, for business models that have a recurring revenue element, one of the key metrics we evaluate is Net Monthly Recurring Revenue (Net MRR). So there is no one formula that fits all," he said.