PaperclipOrg
Claude Agent Skill · by Wshobson

Startup Metrics Framework

This is the metrics framework I wish I had when I was struggling to track the right KPIs at my Series A startup. It handles the math for LTV:CAC ratios, burn mu

Install
Terminal · npx
$npx skills add https://github.com/wshobson/agents --skill startup-metrics-framework
Works with Paperclip

How Startup Metrics Framework fits into a Paperclip company.

Startup Metrics Framework drops into any Paperclip agent that handles this kind of work. Assign it to a specialist inside a pre-configured PaperclipOrg company and the skill becomes available on every heartbeat — no prompt engineering, no tool wiring.

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SaaS FactoryPaired

Pre-configured AI company — 18 agents, 18 skills, one-time purchase.

$27$59
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Source file
SKILL.md549 lines
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---name: startup-metrics-frameworkdescription: Track, calculate, and optimize key performance metrics for SaaS, marketplace, consumer, and B2B startups from seed through Series A, including unit economics, growth efficiency, and cash management. Use this skill when defining a metrics framework, calculating CAC/LTV/burn multiple, benchmarking business health, or preparing metrics dashboards for investors or board reporting.version: 1.0.0--- # Startup Metrics Framework Comprehensive guide to tracking, calculating, and optimizing key performance metrics for different startup business models from seed through Series A. ## Overview Track the right metrics at the right stage. Focus on unit economics, growth efficiency, and cash management metrics that matter for fundraising and operational excellence. ## Universal Startup Metrics ### Revenue Metrics **MRR (Monthly Recurring Revenue)** ```MRR = Σ (Active Subscriptions × Monthly Price)``` **ARR (Annual Recurring Revenue)** ```ARR = MRR × 12``` **Growth Rate** ```MoM Growth = (This Month MRR - Last Month MRR) / Last Month MRRYoY Growth = (This Year ARR - Last Year ARR) / Last Year ARR``` **Target Benchmarks:** - Seed stage: 15-20% MoM growth- Series A: 10-15% MoM growth, 3-5x YoY- Series B+: 100%+ YoY (Rule of 40) ### Unit Economics **CAC (Customer Acquisition Cost)** ```CAC = Total S&M Spend / New Customers Acquired``` Include: Sales salaries, marketing spend, tools, overhead **LTV (Lifetime Value)** ```LTV = ARPU × Gross Margin% × (1 / Churn Rate)``` Simplified: ```LTV = ARPU × Average Customer Lifetime × Gross Margin%``` **LTV:CAC Ratio** ```LTV:CAC = LTV / CAC``` **Benchmarks:** - LTV:CAC > 3.0 = Healthy- LTV:CAC 1.0-3.0 = Needs improvement- LTV:CAC < 1.0 = Unsustainable **CAC Payback Period** ```CAC Payback = CAC / (ARPU × Gross Margin%)``` **Benchmarks:** - < 12 months = Excellent- 12-18 months = Good- > 24 months = Concerning ### Cash Efficiency Metrics **Burn Rate** ```Monthly Burn = Monthly Revenue - Monthly Expenses``` Negative burn = losing money (typical early-stage) **Runway** ```Runway (months) = Cash Balance / Monthly Burn Rate``` **Target:** Always maintain 12-18 months runway **Burn Multiple** ```Burn Multiple = Net Burn / Net New ARR``` **Benchmarks:** - < 1.0 = Exceptional efficiency- 1.0-1.5 = Good- 1.5-2.0 = Acceptable- > 2.0 = Inefficient Lower is better (spending less to generate ARR) ## SaaS Metrics ### Revenue Composition **New MRR**New customers × ARPU **Expansion MRR**Upsells and cross-sells from existing customers **Contraction MRR**Downgrades from existing customers **Churned MRR**Lost customers **Net New MRR Formula:** ```Net New MRR = New MRR + Expansion MRR - Contraction MRR - Churned MRR``` ### Retention Metrics **Logo Retention** ```Logo Retention = (Customers End - New Customers) / Customers Start``` **Dollar Retention (NDR - Net Dollar Retention)** ```NDR = (ARR Start + Expansion - Contraction - Churn) / ARR Start``` **Benchmarks:** - NDR > 120% = Best-in-class- NDR 100-120% = Good- NDR < 100% = Needs work **Gross Retention** ```Gross Retention = (ARR Start - Churn - Contraction) / ARR Start``` **Benchmarks:** - > 90% = Excellent- 85-90% = Good- < 85% = Concerning ### SaaS-Specific Metrics **Magic Number** ```Magic Number = Net New ARR (quarter) / S&M Spend (prior quarter)``` **Benchmarks:** - > 0.75 = Efficient, ready to scale- 0.5-0.75 = Moderate efficiency- < 0.5 = Inefficient, don't scale yet **Rule of 40** ```Rule of 40 = Revenue Growth Rate% + Profit Margin%``` **Benchmarks:** - > 40% = Excellent- 20-40% = Acceptable- < 20% = Needs improvement **Example:**50% growth + (10%) margin = 40% ✓ **Quick Ratio** ```Quick Ratio = (New MRR + Expansion MRR) / (Churned MRR + Contraction MRR)``` **Benchmarks:** - > 4.0 = Healthy growth- 2.0-4.0 = Moderate- < 2.0 = Churn problem ## Marketplace Metrics ### GMV (Gross Merchandise Value) **Total Transaction Volume:** ```GMV = Σ (Transaction Value)``` **Growth Rate:** ```GMV Growth Rate = (Current Period GMV - Prior Period GMV) / Prior Period GMV``` **Target:** 20%+ MoM early-stage ### Take Rate ```Take Rate = Net Revenue / GMV``` **Typical Ranges:** - Payment processors: 2-3%- E-commerce marketplaces: 10-20%- Service marketplaces: 15-25%- High-value B2B: 5-15% ### Marketplace Liquidity **Time to Transaction**How long from listing to sale/match? **Fill Rate**% of requests that result in transaction **Repeat Rate**% of users who transact multiple times **Benchmarks:** - Fill rate > 80% = Strong liquidity- Repeat rate > 60% = Strong retention ### Marketplace Balance **Supply/Demand Ratio:**Track relative growth of supply and demand sides. **Warning Signs:** - Too much supply: Low fill rates, frustrated suppliers- Too much demand: Long wait times, frustrated customers **Goal:** Balanced growth (1:1 ratio ideal, but varies by model) ## Consumer/Mobile Metrics ### Engagement Metrics **DAU (Daily Active Users)**Unique users active each day **MAU (Monthly Active Users)**Unique users active each month **DAU/MAU Ratio** ```DAU/MAU = DAU / MAU``` **Benchmarks:** - > 50% = Exceptional (daily habit)- 20-50% = Good- < 20% = Weak engagement **Session Frequency**Average sessions per user per day/week **Session Duration**Average time spent per session ### Retention Curves **Day 1 Retention:** % users who return next day**Day 7 Retention:** % users active 7 days after signup**Day 30 Retention:** % users active 30 days after signup **Benchmarks (Day 30):** - > 40% = Excellent- 25-40% = Good- < 25% = Weak **Retention Curve Shape:** - Flattening curve = good (users becoming habitual)- Steep decline = poor product-market fit ### Viral Coefficient (K-Factor) ```K-Factor = Invites per User × Invite Conversion Rate``` **Example:**10 invites/user × 20% conversion = 2.0 K-factor **Benchmarks:** - K > 1.0 = Viral growth- K = 0.5-1.0 = Strong referrals- K < 0.5 = Weak virality ## B2B Metrics ### Sales Efficiency **Win Rate** ```Win Rate = Deals Won / Total Opportunities``` **Target:** 20-30% for new sales team, 30-40% mature **Sales Cycle Length**Average days from opportunity to close **Shorter is better:** - SMB: 30-60 days- Mid-market: 60-120 days- Enterprise: 120-270 days **Average Contract Value (ACV)** ```ACV = Total Contract Value / Contract Length (years)``` ### Pipeline Metrics **Pipeline Coverage** ```Pipeline Coverage = Total Pipeline Value / Quota``` **Target:** 3-5x coverage (3-5x pipeline needed to hit quota) **Conversion Rates by Stage:** - Lead → Opportunity: 10-20%- Opportunity → Demo: 50-70%- Demo → Proposal: 30-50%- Proposal → Close: 20-40% ## Metrics by Stage ### Pre-Seed (Product-Market Fit) **Focus Metrics:** 1. Active users growth2. User retention (Day 7, Day 30)3. Core engagement (sessions, features used)4. Qualitative feedback (NPS, interviews) **Don't worry about:** - Revenue (may be zero)- CAC (not optimizing yet)- Unit economics ### Seed ($500K-$2M ARR) **Focus Metrics:** 1. MRR growth rate (15-20% MoM)2. CAC and LTV (establish baseline)3. Gross retention (> 85%)4. Core product engagement **Start tracking:** - Sales efficiency- Burn rate and runway ### Series A ($2M-$10M ARR) **Focus Metrics:** 1. ARR growth (3-5x YoY)2. Unit economics (LTV:CAC > 3, payback < 18 months)3. Net dollar retention (> 100%)4. Burn multiple (< 2.0)5. Magic number (> 0.5) **Mature tracking:** - Rule of 40- Sales efficiency- Pipeline coverage ## Metric Tracking Best Practices ### Data Infrastructure **Requirements:** - Single source of truth (analytics platform)- Real-time or daily updates- Automated calculations- Historical tracking **Tools:** - Mixpanel, Amplitude (product analytics)- ChartMogul, Baremetrics (SaaS metrics)- Looker, Tableau (BI dashboards) ### Reporting Cadence **Daily:** - MRR, active users- Sign-ups, conversions **Weekly:** - Growth rates- Retention cohorts- Sales pipeline **Monthly:** - Full metric suite- Board reporting- Investor updates **Quarterly:** - Trend analysis- Benchmarking- Strategy review ### Common Mistakes **Mistake 1: Vanity Metrics**Don't focus on: - Total users (without retention)- Page views (without engagement)- Downloads (without activation) Focus on actionable metrics tied to value. **Mistake 2: Too Many Metrics**Track 5-7 core metrics intensely, not 50 loosely. **Mistake 3: Ignoring Unit Economics**CAC and LTV are critical even at seed stage. **Mistake 4: Not Segmenting**Break down metrics by customer segment, channel, cohort. **Mistake 5: Gaming Metrics**Optimize for real business outcomes, not dashboard numbers. ## Investor Metrics ### What VCs Want to See **Seed Round:** - MRR growth rate- User retention- Early unit economics- Product engagement **Series A:** - ARR and growth rate- CAC payback < 18 months- LTV:CAC > 3.0- Net dollar retention > 100%- Burn multiple < 2.0 **Series B+:** - Rule of 40 > 40%- Efficient growth (magic number)- Path to profitability- Market leadership metrics ### Metric Presentation **Dashboard Format:** ```Current MRR: $250K (↑ 18% MoM)ARR: $3.0M (↑ 280% YoY)CAC: $1,200 | LTV: $4,800 | LTV:CAC = 4.0xNDR: 112% | Logo Retention: 92%Burn: $180K/mo | Runway: 18 months``` **Include:** - Current value- Growth rate or trend- Context (target, benchmark)  ## Quick Start To implement startup metrics framework: 1. **Identify business model** - SaaS, marketplace, consumer, B2B2. **Choose 5-7 core metrics** - Based on stage and model3. **Establish tracking** - Set up analytics and dashboards4. **Calculate unit economics** - CAC, LTV, payback5. **Set targets** - Use benchmarks for goals6. **Review regularly** - Weekly for core metrics7. **Share with team** - Align on goals and progress8. **Update investors** - Monthly/quarterly reporting