Startup Metrics Framework
Define seed-to-Series-A KPIs, unit economics, and investor-ready metric definitions for a SaaS or marketplace solo build.
Install
npx skills add https://github.com/wshobson/agents --skill startup-metrics-frameworkWhat is this skill?
- Formulas and definitions for MRR, ARR, MoM/YoY growth with stage benchmarks (seed vs Series A)
- Unit economics: CAC, LTV, and burn-multiple style cash efficiency guidance
- Model-specific framing for SaaS, marketplace, consumer, and B2B from seed through Series A
- Investor and board reporting orientation for metrics frameworks and health benchmarks
Adoption & trust: 7.2k installs on skills.sh; 36.5k GitHub stars; 3/3 security scanners passed (skills.sh audits).
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Journey fit
Primary fit
Recurring revenue, growth rate, and cohort analytics are the canonical home in Grow—where you measure whether the product compounds. Analytics subphase covers MRR/ARR tracking, MoM/YoY benchmarks, and dashboard framing tied to fundraising and board narrative.
Common Questions / FAQ
Is Startup Metrics Framework safe to install?
skills.sh reports 3 of 3 security scanners passed. Review the Security Audits panel on this page before installing in production.
SKILL.md
READMESKILL.md - Startup Metrics Framework
# 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 MRR YoY 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 Me