/startup-metrics

name: startup-metrics
description: "Know the metrics that matter at each stage and what investors actually look for. Master the A16Z and YC frameworks for measuring startup progress. Use when: **Fundraising prep** to know which metrics to highlight; **Board meetings** to report on the right KPIs; **Strategic planning** to set goals that matter; **Product decisions** to understand what to optimize; **Diagnosing problems** to find what's broken"
license: MIT
metadata:
  author: ClawFu
  version: 1.0.0
  mcp-server: "@clawfu/mcp-skills"

Startup Metrics

> Know the metrics that matter at each stage and what investors actually look for. Master the A16Z and YC frameworks for measuring startup progress.

When to Use This Skill

• **Fundraising prep** to know which metrics to highlight
• **Board meetings** to report on the right KPIs
• **Strategic planning** to set goals that matter
• **Product decisions** to understand what to optimize
• **Diagnosing problems** to find what's broken
• **Benchmarking** to know if your metrics are good

Methodology Foundation

| Aspect | Details | |--------|---------| | **Source** | A16Z (Andreessen Horowitz), YC (Y Combinator), SaaS metrics best practices | | **Core Principle** | "Measure what matters. Vanity metrics feel good but don't predict success. Focus on metrics that indicate real product-market fit and sustainable growth." | | **Why This Matters** | Wrong metrics lead to wrong decisions. Right metrics reveal truth about your business—good or bad—before it's too late to course-correct. |

What Claude Does vs What You Decide

| Claude Does | You Decide | |-------------|------------| | Structures analysis frameworks | Strategic priorities | | Synthesizes market data | Competitive positioning | | Identifies opportunities | Resource allocation | | Creates strategic options | Final strategy selection | | Suggests implementation approaches | Execution decisions |

What This Skill Does

1. **Identifies key metrics by stage** - What to measure when 2. **Calculates core SaaS metrics** - ARR, MRR, churn, LTV, CAC 3. **Benchmarks performance** - Good vs. great vs. concerning 4. **Diagnoses metric problems** - What poor metrics indicate 5. **Prepares investor-ready dashboards** - What VCs want to see 6. **Prioritizes metric improvement** - What to fix first

How to Use

Get Stage-Appropriate Metrics

I'm a [stage] startup in [industry].
What metrics should I be tracking?
What benchmarks should I aim for?

Calculate Core Metrics

Help me calculate my SaaS metrics:
[Provide: MRR, customer count, churn data, acquisition costs]

Diagnose Metric Problems

My metrics: [list metrics]
What's concerning? What should I focus on fixing?

Instructions

Step 1: Understand Metrics by Stage

## Metrics Framework by Stage

### Pre-Seed (Validation Stage)
**Focus:** Is this a real problem worth solving?

| Metric | Why It Matters | Good Signal |
|--------|---------------|-------------|
| Problem interviews | Validate problem exists | 10+ interviews, 70%+ confirm |
| Solution interviews | Validate solution fits | 60%+ would use |
| LOIs/Waitlist | Real interest signal | Signed commitments |
| Engagement (if prototype) | People want to use it | Daily active usage |

**Not important yet:** Revenue, CAC, LTV, growth rate

---

### Seed (Product-Market Fit Stage)
**Focus:** Do people want this? Will they pay?

| Metric | Why It Matters | Good Signal |
|--------|---------------|-------------|
| **MRR/ARR** | Revenue traction | Any consistent revenue |
| **MoM Growth** | Trajectory | 15-20%+ MoM |
| **Retention** | PMF indicator | >80% monthly retention |
| **NPS** | Customer love | >50 NPS |
| **Engagement** | Product usage | DAU/MAU >20% |

**Emerging importance:** Early unit economics, CAC/LTV ratio

---

### Series A (Scale Stage)
**Focus:** Can this scale? Are unit economics viable?

| Metric | Why It Matters | Good Signal |
|--------|---------------|-------------|
| **ARR** | Revenue scale | $1-2M+ |
| **ARR Growth** | YoY trajectory | 3x YoY |
| **Net Revenue Retention** | Expansion + churn | >100% (ideally >120%) |
| **LTV/CAC** | Unit economics | >3:1 |
| **CAC Payback** | Efficiency | <18 months |
| **Gross Margin** | Business viability | >70% (SaaS) |

---

### Series B+ (Optimization Stage)
**Focus:** Efficiency and path to profitability

| Metric | Why It Matters | Good Signal |
|--------|---------------|-------------|
| **Magic Number** | Sales efficiency | >0.75 |
| **Rule of 40** | Growth + profitability | >40% |
| **Burn Multiple** | Cash efficiency | <2x |
| **Net Dollar Retention** | Account growth | >120% |
| **Quick Ratio** | Growth quality | >4 |

---

Step 2: Calculate Core SaaS Metrics

## Metric Calculations

### Revenue Metrics

**MRR (Monthly Recurring Revenue):**
MRR = Sum of all recurring revenue per month

**ARR (Annual Recurring Revenue):**
ARR = MRR × 12

**MRR Components:**
- New MRR: Revenue from new customers
- Expansion MRR: Upgrades and cross-sells
- Contraction MRR: Downgrades
- Churned MRR: Lost customers

**Net New MRR:**
Net New MRR = New + Expansion - Contraction - Churned

---

### Growth Metrics

**MoM Growth Rate:**
Growth = (MRR this month - MRR last month) / MRR last month × 100

**YoY Growth Rate:**
YoY = (ARR this year - ARR last year) / ARR last year × 100

**CMGR (Compound Monthly Growth Rate):**
CMGR = (Ending MRR / Starting MRR)^(1/months) - 1

---

### Retention Metrics

**Gross Revenue Retention (GRR):**
GRR = (MRR - Churned MRR - Contraction MRR) / MRR × 100
Maximum: 100% (doesn't include expansion)

**Net Revenue Retention (NRR) / Net Dollar Retention (NDR):**
NRR = (MRR + Expansion - Contraction - Churned) / MRR × 100
Can be >100% (good!)

**Logo Churn:**
Logo Churn = Customers lost / Customers at start of period × 100

**Revenue Churn:**
Revenue Churn = Churned MRR / MRR at start of period × 100

---

### Unit Economics

**Customer Acquisition Cost (