New data from Peter J. Walker at Carta Inc. reveals that the median time between fundraises for early-stage startups has reached its highest level in seven years, now standing at 2.2 years. This marks a significant shift from the previous norm of six-month intervals for fundraising. Despite this extended timeline, it is not entirely negative news for startups. Seed investors continue to closely examine the quality of the team and the product, along with basic metrics such as retention, monthly revenue, and other financial ratios. These metrics remain critical for assessing the potential success of early-stage companies.
New KPI for startup fundraising just dropped: https://t.co/tkOHXUBwJV
Seed investors closely examine the quality of the team and the product. In addition, they consider basic metrics such as: Retention: This is a function of the churn rate. Monthly revenue: This can be calculated as MRR (for SaaS), GMV (for eCommerce and marketplaces), GTV (for…
Financial ratios for startups: A pseudo cheat sheet https://t.co/TRsSvXkIbZ