v1.0.0 to v1.0.0

---

name: startup-metrics-framework

description: Track, calculate, and optimize key performance metrics for SaaS, marketplace, consumer, and B2B startups from seed through Series A, including unit economics, growth efficiency, and cash management. Use this skill when defining a metrics framework, calculating CAC/LTV/burn multiple, benchmarking business health, or preparing metrics dashboards for investors or board reporting.

version: 1.0.0

---

# Startup Metrics Framework

Comprehensive guide to tracking, calculating, and optimizing key performance metrics for different startup business models from seed through Series A.

## Overview

Track the right metrics at the right stage. Focus on unit economics, growth efficiency, and cash management metrics that matter for fundraising and operational excellence.

## Marketplace Metrics

### GMV (Gross Merchandise Value)

**Total Transaction Volume:**

```

GMV = Σ (Transaction Value)

```

**Growth Rate:**

```

GMV Growth Rate = (Current Period GMV - Prior Period GMV) / Prior Period GMV

```

**Target:** 20%+ MoM early-stage

### Take Rate

```

Take Rate = Net Revenue / GMV

```

**Typical Ranges:**

- Payment processors: 2-3%

- E-commerce marketplaces: 10-20%

- Service marketplaces: 15-25%

- High-value B2B: 5-15%

### Marketplace Liquidity

**Time to Transaction**

How long from listing to sale/match?

**Fill Rate**

% of requests that result in transaction

**Repeat Rate**

% of users who transact multiple times

**Benchmarks:**

- Fill rate > 80% = Strong liquidity

- Repeat rate > 60% = Strong retention

### Marketplace Balance

**Supply/Demand Ratio:**

Track relative growth of supply and demand sides.

**Warning Signs:**

- Too much supply: Low fill rates, frustrated suppliers

- Too much demand: Long wait times, frustrated customers

**Goal:** Balanced growth (1:1 ratio ideal, but varies by model)

## Consumer/Mobile Metrics

### Engagement Metrics

**DAU (Daily Active Users)**

Unique users active each day

**MAU (Monthly Active Users)**

Unique users active each month

**DAU/MAU Ratio**

```

DAU/MAU = DAU / MAU

```

**Benchmarks:**

- > 50% = Exceptional (daily habit)

- 20-50% = Good

- < 20% = Weak engagement

**Session Frequency**

Average sessions per user per day/week

**Session Duration**

Average time spent per session

### Retention Curves

**Day 1 Retention:** % users who return next day

**Day 7 Retention:** % users active 7 days after signup

**Day 30 Retention:** % users active 30 days after signup

**Benchmarks (Day 30):**

- > 40% = Excellent

- 25-40% = Good

- < 25% = Weak

**Retention Curve Shape:**

- Flattening curve = good (users becoming habitual)

- Steep decline = poor product-market fit

### Viral Coefficient (K-Factor)

```

K-Factor = Invites per User × Invite Conversion Rate

```

**Example:**

10 invites/user × 20% conversion = 2.0 K-factor

**Benchmarks:**

- K > 1.0 = Viral growth

- K = 0.5-1.0 = Strong referrals

- K < 0.5 = Weak virality

## B2B Metrics

### Sales Efficiency

**Win Rate**

```

Win Rate = Deals Won / Total Opportunities

```

**Target:** 20-30% for new sales team, 30-40% mature

**Sales Cycle Length**

Average days from opportunity to close

**Shorter is better:**

- SMB: 30-60 days

- Mid-market: 60-120 days

- Enterprise: 120-270 days

**Average Contract Value (ACV)**

```

ACV = Total Contract Value / Contract Length (years)

```

### Pipeline Metrics

**Pipeline Coverage**

```

Pipeline Coverage = Total Pipeline Value / Quota

```

**Target:** 3-5x coverage (3-5x pipeline needed to hit quota)

**Conversion Rates by Stage:**

- Lead → Opportunity: 10-20%

- Opportunity → Demo: 50-70%

- Demo → Proposal: 30-50%

- Proposal → Close: 20-40%

## Metrics by Stage

### Pre-Seed (Product-Market Fit)

**Focus Metrics:**

1. Active users growth

2. User retention (Day 7, Day 30)

3. Core engagement (sessions, features used)

4. Qualitative feedback (NPS, interviews)

**Don't worry about:**

- Revenue (may be zero)

- CAC (not optimizing yet)

- Unit economics

### Seed ($500K-$2M ARR)

**Focus Metrics:**

1. MRR growth rate (15-20% MoM)

2. CAC and LTV (establish baseline)

3. Gross retention (> 85%)

4. Core product engagement

**Start tracking:**

- Sales efficiency

- Burn rate and runway

### Series A ($2M-$10M ARR)

**Focus Metrics:**

1. ARR growth (3-5x YoY)

2. Unit economics (LTV:CAC > 3, payback < 18 months)

3. Net dollar retention (> 100%)

4. Burn multiple (< 2.0)

5. Magic number (> 0.5)

**Mature tracking:**

- Rule of 40

- Sales efficiency

- Pipeline coverage

## Metric Tracking Best Practices

### Data Infrastructure

**Requirements:**

- Single source of truth (analytics platform)

- Real-time or daily updates

- Automated calculations

- Historical tracking

**Tools:**

- Mixpanel, Amplitude (product analytics)

- ChartMogul, Baremetrics (SaaS metrics)

- Looker, Tableau (BI dashboards)

### Reporting Cadence

**Daily:**

- MRR, active users

- Sign-ups, conversions

**Weekly:**

- Growth rates

- Retention cohorts

- Sales pipeline

**Monthly:**

- Full metric suite

- Board reporting

- Investor updates

**Quarterly:**

- Trend analysis

- Benchmarking

- Strategy review

### Common Mistakes

**Mistake 1: Vanity Metrics**

Don't focus on:

- Total users (without retention)

- Page views (without engagement)

- Downloads (without activation)

Focus on actionable metrics tied to value.

**Mistake 2: Too Many Metrics**

Track 5-7 core metrics intensely, not 50 loosely.

**Mistake 3: Ignoring Unit Economics**

CAC and LTV are critical even at seed stage.

**Mistake 4: Not Segmenting**

Break down metrics by customer segment, channel, cohort.

**Mistake 5: Gaming Metrics**

Optimize for real business outcomes, not dashboard numbers.

## Investor Metrics

### What VCs Want to See

**Seed Round:**

- MRR growth rate

- User retention

- Early unit economics

- Product engagement

**Series A:**

- ARR and growth rate

- CAC payback < 18 months

- LTV:CAC > 3.0

- Net dollar retention > 100%

- Burn multiple < 2.0

**Series B+:**

- Rule of 40 > 40%

- Efficient growth (magic number)

- Path to profitability

- Market leadership metrics

### Metric Presentation

**Dashboard Format:**

```

Current MRR: $250K (↑ 18% MoM)

ARR: $3.0M (↑ 280% YoY)

CAC: $1,200 | LTV: $4,800 | LTV:CAC = 4.0x

NDR: 112% | Logo Retention: 92%

Burn: $180K/mo | Runway: 18 months

```

**Include:**

- Current value

- Growth rate or trend

- Context (target, benchmark)

## Quick Start

To implement startup metrics framework:

1. **Identify business model** - SaaS, marketplace, consumer, B2B

2. **Choose 5-7 core metrics** - Based on stage and model

3. **Establish tracking** - Set up analytics and dashboards

4. **Calculate unit economics** - CAC, LTV, payback

5. **Set targets** - Use benchmarks for goals

6. **Review regularly** - Weekly for core metrics

7. **Share with team** - Align on goals and progress

8. **Update investors** - Monthly/quarterly reporting