metrics that matter

Definition

The handful of key performance indicators that actually determine business health versus the vanity metrics founders cite in pitch meetings. Revenue and retention versus social media followers and press mentions.

Example Usage

Our deck had impressive graphs about user engagement, but the VCs only cared about revenue retention, which we'd hidden on slide 47.

Origin

Lean analytics and metrics-driven management

Fun Fact

Different investors focus on different 'metrics that matter' based on their investment thesis, so savvy founders tailor their metrics storytelling to each VC's obsessions.

Source: Startup analytics and performance measurement

Related Terms

Beginner

Ramen Profitable

The stage at which a startup makes just enough revenue to cover the founders' basic living expenses, assuming those expenses are limited to instant noodles and shared housing. It's the lowest bar of financial success that still technically counts as success.

🚀 Startup / VC

Intermediate

network effects

The magical property where your product becomes more valuable as more people use it—or what every social startup claims to have despite zero evidence. True network effects are rarer than honest user growth numbers.

🚀 Startup / VC

Intermediate

memo culture

The internal practice at VC firms of writing detailed investment memos that analyze potential deals. Where partners commit their hottest takes to writing so they can be mocked later when wrong.

🚀 Startup / VC

Advanced

cram down round

A financing round where new investors impose harsh terms on existing shareholders who lack the votes to block it. It's democracy in action, if democracy meant 'whoever has the most money wins.'

🚀 Startup / VC

Intermediate

equity crowdfunding

Raising capital from numerous small investors through online platforms, democratizing access to startup investment and the opportunity to lose money on early-stage companies. Kickstarter, but instead of getting a T-shirt, you get illiquid securities.

🚀 Startup / VC

Advanced

anti-dilution provisions

Protective clauses that let early investors maintain their ownership percentage when future rounds price lower, punishing founders for failing to maintain perpetual hockey stick growth. Comes in weighted-average and full-ratchet flavors of pain.

🚀 Startup / VC

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