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