Traction Metrics That Matter to Investors

Show meaningful progress toward product-market fit with metrics that demonstrate real customer value and business momentum.

Metrics by Business Model

SaaS/Subscription

Growth Metrics:
  • • Monthly Recurring Revenue (MRR)
  • • Annual Recurring Revenue (ARR)
  • • Net Revenue Retention
  • • Monthly Active Users (MAU)
Health Metrics:
  • • Customer Churn Rate
  • • Customer Lifetime Value (LTV)
  • • Customer Acquisition Cost (CAC)
  • • LTV:CAC Ratio

Marketplace/Platform

Volume Metrics:
  • • Gross Merchandise Volume (GMV)
  • • Transaction Volume
  • • Active Buyers/Sellers
  • • Repeat Transaction Rate
Engagement Metrics:
  • • Average Transaction Size
  • • Frequency of Use
  • • Supply/Demand Balance
  • • Network Density

Metrics by Stage

Pre-Revenue/Early Stage

  • • User signups and activation rates
  • • Product usage and engagement
  • • Customer feedback and NPS scores
  • • Pilot customer commitments

Revenue Stage

  • • Revenue growth rate
  • • Customer acquisition and retention
  • • Unit economics and profitability
  • • Market expansion indicators

Presenting Your Metrics

Best Practices

  • Show trends: Include growth rates and trajectory, not just point-in-time numbers
  • Provide context: Compare to industry benchmarks where relevant
  • Be honest: Acknowledge limitations and areas for improvement
  • Focus on quality: Better to have fewer strong metrics than many weak ones