Most startup investors look for entrepreneurs who know their business inside and out. Historical financials are rarely a good predictor of future startup success, but entrepreneurs’ understanding of their financials and key metrics can be. In helping our MergeLane teams prepare for Demo Day last month, we put together a list of financial metrics that every entrepreneur should know by heart (or at least have on hand) when meeting with investors.
Here they are:
Revenue
Revenue growth (as a percentage)
Gross margin
Customer acquisition metrics (if applicable)
Cash
Funding history
Funding plan – current
Future funding
Other metrics:
I hope this is helpful and please share any metrics you think I’m missing.
I allowed myself to include all of my “ridiculous” wants and aspirations on my list of 2023 goals, one of which was “finding a coach and co-collaborator who would agree to hold meetings from the chairlift.” Believe it or not, I was actually able to manifest that.
Read more ➞It is amazing what you can achieve if you get out of your own way.
Read more ➞I have learned the important lesson that being mediocre at anything is not a “safe” path to success. I now realize that the “safe” path for others may not be the best route for me.
Read more ➞In investing, and in life in general, an ability to foresee potential pitfalls has served me well. However, being able to see what can go wrong can prevent me from seizing an opportunity. I sometimes forget that most of my successes have been the result of seemingly impossible feats.
Read more ➞