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Investor Connect Podcast

Investor Connect is for investors interested in learning more about investing in startup and growth stage companies. Experienced investors share their experiences and advice with those who are considering an investment into startups and growth companies. It includes a podcast series of interviews with investors to inform others about the process of funding startups as well as a resource list and a discussion board.  

Topics include sourcing, analyzing, and researching companies. Other topics include valuations, terms Sheets, board of directors, board of advisors, due diligence, syndicates, venture capital, angels, angel networks, family offices, crowdfunding, exits, and more.

Investor Connect is a community program. We welcome your suggestions for speakers and topics which you can send to us through the Contact page. No registration is required to use the resources.  Discussion boards are available to post and answer questions about startups and growth company investing through which registration is required.

Investor Connect is a program under the Texas Open Angel Network which is a 501(c3) non-profit dedicated to the education around startup funding.

Disclaimer: Hall T. Martin is the Director of Investor Connect which is dedicated to the education of investors for early stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.

Oct 30, 2019

Use Metrics to show your progress

Today, we’ll talk about knowing your metrics

Investors look for the metrics in your business so it’s important to know them. There are three levels of metrics you can use:

Activity metrics show the basic activity of the business

Unit economic metrics show the unit economic model including cost of customer acquisition and revenue.

Growth metrics show the growth in the user base and usage of the product.

Activity metrics show number of users, downloads, registrations and the like. They fall short of business results such as closed sales. If nothing else focus on the customer engagement numbers you have.

If your company is pre-revenue you can show how the business model is “profitable” by using  unit economic numbers. At its core, you show the cost and process to generate leads, qualify, and close them for revenue.

In the early days of a business the revenue is small.  Most investors know that and don’t expect large revenue.  What they look for is repeatable and predictable revenue. Showing unit economics demonstrates you have a core business model that is working and with time and funding can improve.

Growth metrics show the number of users increasing and their usage of the product increasing. Daily active or monthly active users should be going up and to the right. If the business has seasons or cycles, then one can use a six month moving average to show your growth rate.

In summary, if you can only show activity metrics then do so.  If you can show unit economic metrics, that will help. The best metrics show  growing users and usage.

Whatever you do, don’t show up empty-handed.

Thank you for joining us for the Startup Espresso where we help startups and investors connect for funding.

Let’s go startup something today!