Startup KPIs Every Founder Should Track
Written by Harry Prabandham
Curated by Rubric Financial
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Revenue Metrics
- Monthly Recurring Revenue (MRR) is the predictable revenue your business earns each month from active subscriptions, and is the foundation of SaaS valuation.
- Annual Recurring Revenue (ARR) equals MRR multiplied by 12 and is the primary metric investors use to benchmark SaaS companies at each funding stage.
- Revenue growth rate (month-over-month and year-over-year) signals market traction; top-quartile Series A companies grow MRR 15-20% month-over-month.
- Track new MRR, expansion MRR, contraction MRR, and churned MRR separately to understand the components driving your growth.
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About the author
Harry PrabandhamFounder & CEO
Founder and CEO of StartupCFO. MBA from Wharton, MS in Computer Science, and decades of experience building and advising venture-backed startups.
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