What Top Metrics do VC Funds Track After They Invest?

Q:  What are the top portfolio company metrics that VCs track post-investment?

In practice, there are just a few:

  • ARR. Where is the company in terms of revenue.
  • Growth Rate. How fast is it growing.
  • Burn Rate & “Zero Cash Date”. How much cash is it burning, and how long does that cash last. More on Zero Cash Date here: Knowing — and Sharing — Your Zero Cash Date | SaaStr
  • Ownership. What % of the company does the fund own.

The rest is important, but there generally are too many companies in a fund (15–30 per fund) for the rest to make the top 3–4 headline KPIs.

A related post here: What are the most important metrics for SaaS?

5 Things No One Tells You About VC Firms

Published on January 20, 2021

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