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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.

Jan 28, 2022

Metrics Investors Use

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Investors also use metrics.

Here’s a list of key metrics investors focus on:

Annual Recurring Revenue (ARR) Growth - the overall growth rate of the revenue is a key factor.

Month-over-month growth demonstrates product-market fit.

Magic number - shows how sales and marketing spend drives revenue.

To calculate, take this quarter revenue minus last quarter revenue multiply by four and divide by the sales and marketing costs.

Investors want to see an equal return of revenue for every dollar spent on sales and marketing.

Gross margins - shows operational efficiency of the business.

Most SaaS companies have a gross margin between 60% and 70%.  

Return on investment - shows how much the investment can return.

Investors seek a high potential return by looking for a large market with acquisitions in the high multiples based on revenue.

In essence, the investor looks for evidence of growth and efficiency in sales and operations and a return on investment.

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

Let’s go startup something today.

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Music courtesy of Bensound.