The post on 16 key startup metrics a few weeks ago by Andreesen Horowitz (a high-profile VC firm in Silicon Valley) generated so much interest that they followed it up with a post on 16 more startup metrics.
This second set of 16 startup KPIs, while focused heavily on tech startups and SaaS companies in particular, can also be very useful for non-tech SMBs in the San Francisco Bay Area.
Here is quote from the post on the importance of using the right set of metrics to profitably grow your business:
“Good metrics aren’t just about raising money from VCs … they’re about running the business in a way where founders can know how — and why — certain things are working (or not), and then address them accordingly. In other words, these metrics aren’t just for pitching but for discussing in subsequent board meetings, quarterly updates, and management meetings. As one reader shared: “Drive with them, don’t just ‘report’ them”.”
Here is the list of the 2nd set of 16 startup metrics:
Business and Financial Metrics
#1 Total Addressable Market (TAM)
#2 ARR ≠ Annual Run Rate
#3 Average Revenue Per User (ARPU)
#4 Gross Margins
#5 Sell-Through Rate & Inventory Turns
Economic and Other Defining Qualities
#6 Network Effects
#7 Virality
#8 Economies of Scale (“Scale”)
Other Product and Engagement Metrics
#9 Net Promoter Score (NPS)
#10 Cohort Analysis
#11 Registered Users
#12 Active Users
#13 Sources of Traffic
#14 Customer Concentration Risk
Presenting Metrics Generally
#15 Truncating the Y-Axis
#16 Cumulative Charts, Again