KEY STARTUP METRICS VCS CARE ABOUT

Summary from the TLDR Founders newsletter

VCs don't fund ideas, they fund metrics. While investors love compelling stories, they rely on concrete numbers to gauge whether a startup is scalable and worth funding. The most critical metrics vary by stage—early investors focus on market potential and retention, Series A demands sustainable growth with $3-5M ARR and 100%+ Net Dollar Retention, while later rounds scrutinize efficiency indicators like burn rate and gross margins. The metrics that matter most also depend on your industry: SaaS investors prioritize ARR and NDR, marketplace VCs watch GMV and take rates, consumer apps need strong DAU/MAU ratios, and fintechs must show transaction volume with regulatory compliance.