Startup Metrics

  • Active users
  • Cash runway: how many months your company has before running out of cash?
    • Formula:
      • Cash balance: how much money you have for your company
      • monthly rate: how much your company needs to keep running
  • Customer Churn Rate
  • Retention rate
  • Monthly recurring revenue projection(MRR projection): how much money you will have in the future annualized based on how much you are making now, the average monthly growth, and the net Churn Rate.
    • Formula:
  • North Star Metric: The measurement that's most predictive of a company's long-term success. It is a leading indicator of revenue, Reflects customer value, and Measures progress.
  • Total addressable market(TAM): The total addressable market(or total available market) is the revenue opportunity available for a product or service.
  • Serviceable Addressable Market(SAM): the portion of TAM that market that the company is looking to actually target with its specific product/service.
  • Serviceable obtainable market(SOM): shows how much of the SAM can be realistically captured by a business in the short/mid term.

Learning Material: