Investors Will Look At these Metrics Of Your Startups

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2014/03/08 by lingdecklee

metrics

According to The Complete Quantitative Guide To Judging Your Startup, any early-stage investor seriously interested in investing in your startup will want to assess their risk by looking at the following different metrics of your startup:

Financial:

– Monthly revenue growth

– Revenue run rate

– Margins

– Burn rate and runway

User:

– K-value (measuring your virality)

– Proportion of mobile traffic (if you have a mobile strategy)

– Cohort analysis and churn

User acquisition and marketing:

– Cost of acquiring a customer and payback

– Net promoter score

Sales:

– Magic number

– Basket size and order velocity

– Average sales cycle

– Long term value

Market:

– Total addressable market

– Average wallet size

You can also compare above to another set of metrics covered in another article I shared.

The important point here is: get quantitative, but don’t get too attached to the numbers. An impressive set of metrics does not equate to success, neither does a lousy set of metrics equate to failure. The statistics are merely there to help people make informed decisions. Gut feelings do not always work better when it comes to startup.

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[Startup Event] If you are in Taiwan, join me at the next EST event, Woman Entrepreneur Night (link to the Facebook event) on March 25th (Tuesday, 7pm), hosted by Entrepreneurs Society of Taiwan (EST). EST is a premier startup group which hosts monthly startup events for the English speaking segment of the entrepreneurial community in Taiwan. You can join its Facebook group or Facebook fan page for future event updates.

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[New Startup] The legal web startup, BizAbroad Xpress (BX) (Facebook fan page), has recently launched its beta. BX is a self-help service that changes the way people set up their business entities abroad. Absolutely no email or telephone call necessary. The first country to open for service will be Taiwan, to be followed by other countries one by one, including those among the tax havens. It is also currently looking for angel investors. If you wish to read more about BX, you may also take a look at interviews published on PunNode and TechView Asia

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