The Metrics That Matter: What to Track Before Series A

Series A Is a Metrics Game

While seed rounds are often about vision and team, Series A is fundamentally about proof. Investors at this stage want quantitative evidence that your business model works. Here are the metrics that matter most, organized by business model.

For SaaS Companies

• ARR (Annual Recurring Revenue): $1M–$2M is the typical Series A threshold. Faster-growing companies can raise at $500K+ ARR.
• MoM Growth Rate: 15–20% month-over-month growth demonstrates strong momentum.
• Net Revenue Retention: Above 100% means existing customers are expanding. 120%+ is exceptional.
• CAC Payback Period: Under 12 months shows efficient customer acquisition.
• Gross Margin: 70%+ for software is the baseline expectation.

For Marketplace Companies

• GMV (Gross Merchandise Volume): Strong growth trajectory matters more than absolute numbers.
• Take Rate: What percentage of GMV becomes revenue? This indicates pricing power.
• Liquidity: Are transactions happening reliably on both sides of the marketplace?
• Repeat Usage: How often do users transact per month?

For Consumer Apps

• DAU/MAU Ratio: Above 25% indicates strong engagement. 50%+ is world-class.
• D30 Retention: What percentage of users are still active after 30 days?
• Viral Coefficient: Is each user bringing in more than one new user?
• LTV/CAC Ratio: Above 3x suggests a sustainable growth model.

Universal Metrics

Regardless of your business model, every Series A investor cares about:

• Burn rate and runway: How capital-efficient are you?
• Cohort analysis: Are newer cohorts performing better than older ones?
• Team growth: Can you attract and retain talent?

Start Tracking Early

Don't wait until you're ready to raise to start tracking these metrics. The trend line matters as much as the absolute numbers. Six months of consistent improvement tells a stronger story than one great month.