KPIs for Pitch Meetings: What Investors Want to SeeSep 20, 2023
Key performance indicators (KPIs) are metrics that measure the performance and progress of a business. They are an important tool for startups to track their performance and demonstrate their progress to investors. In a pitch meeting, investors will want to see how your business is performing and what kind of growth potential it has. In this blog post, we will discuss the KPIs that startups should know for a pitch meeting with investors.
- Revenue growth
Revenue growth is one of the most important KPIs for investors. It measures the increase in revenue over a certain period of time, and it's a key indicator of a business's health and potential for growth. Investors will want to see positive revenue growth and a clear plan for how the business plans to continue growing its revenue.
- Customer acquisition cost (CAC)
CAC measures the cost of acquiring a new customer, and it's a key metric for evaluating the efficiency of a business's marketing and sales efforts. Investors will want to see that the CAC is low, as it indicates that the business is acquiring customers at a reasonable cost.
- Lifetime value (LTV)
LTV measures the total value of a customer to a business over the lifetime of their relationship. It's an important metric for evaluating the potential of a business's revenue streams. Investors will want to see a high LTV, as it indicates that the business is generating a significant amount of revenue from each customer.
- Gross margin
Gross margin measures the profitability of a business, and it's a key indicator of a business's ability to generate profit. Investors will want to see a high gross margin, as it indicates that the business is generating revenue at a higher rate than it's spending on costs.
- Net Promoter Score (NPS)
NPS is a customer satisfaction metric that measures how likely a customer is to recommend a business to others. It's a key indicator of customer loyalty and can provide insight into the effectiveness of a business's marketing and customer service efforts. Investors will want to see a high NPS, as it indicates that customers are satisfied and engaged with the business.
- Monthly Recurring Revenue (MRR)
MRR measures the predictable income generated from customers on a monthly basis. It's a key metric for evaluating the scalability and predictability of a business's revenue streams. Investors will want to see a steady increase in MRR, as it indicates that the business is growing its customer base and generating predictable revenue.
- Burn rate
Burn rate measures the rate at which a business is using its cash reserves. It's an important metric for evaluating the financial health of a business and its ability to sustain itself in the long term. Investors will want to see a low burn rate, as it indicates that the business is managing its expenses well and is not running out of cash too quickly.
In conclusion, understanding and being able to present the right KPIs in a pitch meeting with investors is crucial for demonstrating the progress and potential of your startup. By showing positive revenue growth, a low CAC, a high LTV, a high gross margin, a high NPS, a steady increase in MRR and a low burn rate you can build trust and confidence with investors and increase your chances of securing funding. Keep in mind that these are not the only KPIs out there, and depending on your business and industry, some other KPIs may be more relevant for you to present. Also, remember that these KPIs are only meaningful if they are presented in context and with explanations of the underlying assumptions and key drivers.
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