The essential metrics every founder needs to understand. Clear definitions, real formulas, and benchmarks that actually matter.
Annual Recurring Revenue
Annual Recurring Revenue (ARR) is the annualized value of your recurring subscription revenue. It's ...
Monthly Recurring Revenue
Monthly Recurring Revenue (MRR) is the predictable revenue your business earns every month from subs...
Average Revenue Per User
Average Revenue Per User (ARPU) is the mean revenue generated per customer or user account. It's a k...
Annual Contract Value
Annual Contract Value (ACV) is the average annualized revenue per customer contract. It normalizes c...
Annual Contract Value (ACV)
Annual Contract Value (ACV) is an average annual value from each contract. It's basically your reven...
Average Revenue Per User (ARPU)
Average Revenue Per User (ARPU) is a metric used by companies to measure how much revenue they are g...
Billings
The term "billings" is the total amount of customer invoices or bills generated by a company during ...
Bookings
The term "bookings" is the value of confirmed orders or sales made by a company during a specific pe...
Contribution Margin
"Contribution margin is a financial metric that represents the profitability of a product, service, ...
Cross Selling
"Cross-selling is a sales and marketing strategy in which a company promotes and sells additional pr...
Customer Acquisition Cost (CAC)
CAC is an acronym for Customer Acquisition Cost. It is a key metric used to evaluate the cost-effect...
Customer Attrition
Customer attrition refers to the gradual loss of customers or clients over time....
Deferred Revenue
Deferred revenue, also known as unearned revenue or deferred income, is a concept in accounting that...
Delaware Franchise Tax
"The Delaware franchise tax is an annual fee that businesses incorporated in the state of Delaware a...
Depreciation
Depreciation refers to the systematic allocation of the cost of a tangible asset over its useful lif...
Dollar-Based Net Expansion Rate
What is Dollar-Based Net Expansion Rate?...
Gross Merchandise Value (GMV)
Gross Merchandise Value (GMV) is a financial metric used primarily in e-commerce and retail business...
Gross Retention
Gross retention, also known as gross revenue retention or gross dollar retention, is a metric used t...
Hockey Stick Growth
Hockey stick growth, in the context of startups, refers to a rapid and exponential increase in busin...
Monthly Recurring Revenue (MRR)
Monthly Recurring Revenue (MRR) is a key metric used by subscription-based businesses to measure the...
Net Dollar Retention
Net Dollar Retention, also known as Net Revenue Retention or Net Expansion Rate, is a metric used to...
Net Profit
Net profit, also known as net income or net earnings, is a key financial metric that represents the ...
P&L
P&L, or "Profit and Loss" is a financial statement that summarizes the revenues, costs, and expenses...
Right Of First Refusal (ROFR)
The Right of First Refusal (ROFR) is a contractual provision that grants one party the opportunity t...
S Corporation
An S corporation, or S-corp, is a legal business structure that combines the legal advantages of a t...
Sales And Marketing Efficiency
Sales and marketing efficiency refers to the effectiveness and productivity of an organization's sal...
Serviceable Obtainable Market (SOM)
The term "Serviceable Obtainable Market" (SOM) is used in business and marketing to refer to the por...
Total Revenue Formula
The total revenue is a key financial metric that represents the total income generated by a business...
Unit Economics
Unit economics in startups refer to the analysis of the direct revenues and costs associated with ac...
Net Revenue Retention
Net Revenue Retention (NRR) measures the percentage of recurring revenue retained from existing cust...
Customer Churn Rate
Churn rate is the percentage of customers (or revenue) that cancel or don't renew in a given period....
Analytics (web)
Analytics (web) refers to the collection, measurement, and analysis of web data to understand and op...
Attribution Modeling
Attribution modeling refers to the process of assigning credit to various marketing touchpoints that...
Average Customer Life (ACL)
The duration of the relationship between a customer and the company. Basically, the average number o...
Retention
Retention refers to the strategy and activities a business undertakes to maintain and foster long-te...
Scale-Up
Scale-up in the startup realm refers to the phase where a company experiences rapid and substantial ...
Customer Acquisition Cost
Customer Acquisition Cost (CAC) is the total cost of acquiring a new customer, including all sales a...
Customer Lifetime Value
Customer Lifetime Value (LTV or CLTV) is the total revenue you expect to earn from a customer over t...
Lifetime Value to Customer Acquisition Cost Ratio
The LTV:CAC ratio compares the lifetime value of a customer to the cost of acquiring them. It's the ...
Customer Acquisition Cost Payback Period
CAC Payback Period is the number of months it takes to recover the cost of acquiring a customer thro...
Acquihire
Combining the words "acquisition" and "hire," acquihire refers to a strategic acquisition primarily ...
Cash Burn Rate
Burn rate is how much cash your company spends (net of revenue) each month. It's the speed at which ...
Cash Runway
Runway is how many months your company can continue operating at current burn rate before running ou...
Operating Cash Flow
Operating Cash Flow (OCF), also known as Cash Flow from Operations, is a financial metric that repre...
Outsourced CFO
An outsourced CFO (Chief Financial Officer) is a financial professional who is hired by a company on...
The Rule of 40
The Rule of 40 states that a healthy SaaS company's growth rate plus profit margin should equal or e...
SaaS Quick Ratio (Growth Efficiency)
The SaaS Quick Ratio measures growth efficiency by comparing revenue additions (new + expansion) to ...
Chief Product Officer (CPO)
The Chief Product Officer (CPO) is responsible for overseeing product development, innovation, and o...
Land And Expand
Land and expand is a business strategy often employed by software-as-a-service (SaaS) companies and ...
Month Over Month
Month over Month (MoM) refers to the comparison of financial data or metrics between two consecutive...
Scalability
The term scalability in the startup realm refers to the capacity of a business model, product, or op...
409A Valuation
A 409A valuation, also known as a Section 409A valuation, is a specific type of appraisal or valuati...
Angel Investor
An angel investor, often referred to simply as an "angel," is an individual who provides financial b...
Anti-Dilution Clause
Anti-dilution clause is a provision often included in investment agreements to protect investors fro...
Balance Sheet
A balance sheet is one of the three primary financial statements used to assess a company's financia...
C Corporation
A C Corporation, often simply referred to as a "C Corp," is a type of legal business structure in th...
Cap Table
A capitalization table, often abbreviated as "cap table," is a financial spreadsheet or document tha...
Cliff
Cliff refers to a specific period at the beginning of an employee's tenure during which they do not ...
Convertible Note
"A convertible note, also known as a convertible promissory note or simply a "convertible," is a typ...
Data Room
"A data room, also known as a virtual data room (VDR) or a deal room, is a secure and controlled onl...
Double-trigger Acceleration
"Double-trigger acceleration" is a term commonly used in the context of employee stock options and e...
Equity Capital
Equity capital refers to the funds raised by a company through the issuance of equity, typically in ...
Equity Crowdfunding
Equity crowdfunding refers to the process of raising capital from a large group of individuals or in...
Form D
Form D is a filing with the U.S. Securities and Exchange Commission (SEC) that is used to provide no...
Form S-1
Form S-1 is a registration statement required by the U.S. Securities and Exchange Commission (SEC) f...
Internal Controls
Internal controls refer to a system of processes, policies, procedures, and practices that an organi...
LLC
"LLC" stands for "Limited Liability Company." It is a flexible and popular legal business structure ...
Lock Up Period
A lock-up period, also known as a lock-up agreement, is a contractual restriction imposed on company...
Option Pool
An option pool, in the context of startup financing and equity compensation, refers to a block of sh...
Outsourced Controller
An outsourced financial controller is a professional who works with companies to ensure accurate and...
Pre Money Valuation
Pre-money valuation is a term commonly used in the context of startup financing and venture capital ...
Roll Up Vehicle (RUV)
A Roll-Up Vehicle (RUV) refers to a specialized type of corporate entity or structure that is create...
Simple Agreement Future Equity
A Simple Agreement for Future Equity (SAFE) is a financial instrument used in early-stage startup in...
Sweat Equity
Sweat equity refers to the value or ownership stake individuals earn in a startup through their non-...
Term Sheet
A term sheet serves as a non-binding document outlining the key terms, conditions, and proposed term...
Unicorn
A unicorn refers to a privately-held startup valued at over $1 billion, symbolizing extraordinary gr...
Vesting Acceleration
Vesting acceleration is a term used in the context of stock options, restricted stock, and other equ...
Accelerator
An accelerator typically refers to a program or initiative that provides support, resources, and men...
Accredited Investor
An accredited investor is an individual or entity that meets certain financial criteria set by secur...
Bookkeeping
Bookkeeping is the process of recording, organizing, and maintaining a systematic and accurate recor...
Burn Multiple
A burn multiple is a relatively new capital efficiency metric . It can be calculated by taking your ...
Capital Expenditures (CapEx)
Capital expenditures, often abbreviated as CapEx, are funds that a company or organization spends to...
Chart Of Accounts
A Chart of Accounts (COA) is a structured list of all the accounts used to record financial transact...
Elevator Pitch
An elevator pitch is a concise and compelling presentation that summarizes a startup's value proposi...
Entrepreneur In Residence
An "Entrepreneur in Residence" (EIR) is an individual, often an experienced entrepreneur or business...
Forecasts
In finance, forecasts are predictions or estimates of future financial performance, outcomes, or con...
Founder
A founder is the visionary individual who initiates and establishes a new business venture, taking o...
Free Cash Flow
Free Cash Flow (FCF) is a financial metric that represents the amount of cash generated by a company...
Fundraising
Fundraising, in the context of startups, refers to the process of securing external capital from var...
Gross Merchandise Value
Gross Merchandise Value (GMV) is a financial metric used in e-commerce and retail to measure the tot...
Lead Investor
A lead investor is typically a seasoned venture capitalist, angel investor, or institutional fund th...
Pay To Play
"Pay to play" is a term used to describe a provision in an investment agreement that requires existi...
Pitch Deck
A pitch deck is a concise presentation typically used by entrepreneurs, startup founders, or busines...
Pre-Seed Round
A pre-seed round represents the initial stage of external funding that a startup raises to develop i...
Sales Led Growth (SLG)
Sales Led Growth (SLG) is a strategic approach adopted by startups that prioritizes sales initiative...
Sales Pipeline
A sales pipeline, also known as a sales funnel, is a visual representation or a structured system th...
Seed Funding
Seed funding is the initial stage of external investment secured by startups to kickstart their oper...
Series A
Series A funding is a crucial stage in a startup's growth trajectory, representing the first signifi...
Special Purpose Vehicle (SPV)
A Special Purpose Vehicle (SPV), also known as a Special Purpose Entity (SPE) or a Special Purpose C...
Statement Of Cashflows
The Statement of Cash Flows (also known as the Cash Flow Statement) is one of the financial statemen...
Syndicate
A syndicate in the startup ecosystem refers to a collaborative network comprising individual investo...
Target Company
A target company refers to a specific business or startup identified by investors or acquirers as a ...
Chief Marketing Officer (CMO)
A Chief Marketing Officer (CMO) is a C-level executive responsible for overseeing and shaping the en...
Fractional CFO
A Fractional CFO, also known as an Outsourced CFO or Part-Time CFO, refers to a financial profession...
Full Time Employee
A full-time employee is an individual who is employed by an organization or company and typically wo...
Officers
Company officers are individuals who hold executive positions within a corporation and are responsib...
Ramp Time
Ramp time, in a business context, refers to the period it takes for a new employee to become fully p...
Basis Point
A basis point, often abbreviated as "bps," is a unit of measure commonly used in finance and investm...
Conversion Rate Optimization (CRO)
Conversion Rate Optimization (CRO) is a strategic approach for improving the effectiveness of a star...
Cost Of Goods Sold (COGS)
COGS is an acronym for "Cost of Goods Sold." It is a critical expense item on a company's income sta...
DBA Doing Business As
A "Doing Business As" (DBA) is a registered trade name or fictitious business name that a business o...
Fair Market Value (FMV)
"Fair Market Value (FMV) is a commonly used term in various financial and legal contexts, and it ref...
FP&A
FP&A is an abbreviation for Financial Planning and Analysis. It is a crucial function within an orga...
Key Performance Indicator
A Key Performance Indicator (KPI) is a quantifiable metric or data point used to evaluate the perfor...
Last Twelve Months
Last Twelve Months (LTM) refers to a time period of the most recent twelve consecutive months, typic...
Lean Startup
Coined by Eric Ries, the Lean Startup methodology advocates for a streamlined and data-driven approa...
Media Spend
Media spend refers to the amount of money a company allocates for advertising and promotional activi...
Minimum Viable Product
A Minimum Viable Product (MVP) is a concept in product development and entrepreneurship that refers ...
Stealth Mode
Stealth mode refers to a strategic approach adopted by startups wherein they operate clandestinely, ...
Everything you need to know about getting your company investor-ready.
What You Need Before You Start Raising
Series A is a different beast than seed. VCs expect metrics, not just vision. Here's what you need to have locked down before you start the process.
What VCs Actually Look For (And How to Ace It)
Due diligence kills deals. Not because companies are doing anything wrong, but because they're not prepared. Here's how to survive the process.
The Model That Gets You Funded
Your financial model tells a story. Here's how to build one that investors actually believe and can diligence.
How to Keep Your Investors Happy (And Get More Money Later)
Good investor updates make raising your next round 10x easier. Bad updates (or no updates) make investors worry. Here's how to do it right.
We help startups build investor-grade financial infrastructure. Real-time dashboards, clean books, and metrics that tell your growth story.
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