16 More Startup Metrics. A few weeks ago, we shared some key startup metrics (16 of them, to be exact) that help investors gauge the health of a business when investing in it. But to repeat ourselves for a moment: Good metrics aren’t just about raising money from VCs … they’re about running the business in a way where founders can know how — and why — certain things are working (or not), and then address them accordingly. In other words, these metrics aren’t just for pitching but for discussing in subsequent board meetings, quarterly updates, and management meetings.
As one reader shared: “Drive with them, don’t just ‘report’ them”. So (and with thanks to all the folks on Twitter who shared their feedback or built on our previous post), here are 16 more metrics that we think are important to add to the list. And yes, it is a good thing that there are only 16 letters between the A to Z of our name…! #1 Total Addressable Market (TAM) TAM is a way to quantify the market size/ opportunity.
. #2 ARR ≠ Annual Run Rate 1. Startup library. The Founder’s Guide To Selling Your Company. For most founders, selling a company is a life changing event that they have had no training for. At Y Combinator, one big thing we help our startups with is navigating questions around the acquisition process. Originally, I wrote this guide for YC startups outlining what I’ve learned in my last ten years as an entrepreneur about selling startups. If you are going through an acquisition, hopefully this will be useful to you. When to Sell Similar to raising money, the best time to sell your startup is when you don’t need to or want to.
Paradoxically, you are probably thinking about selling your startup as you are experiencing a lack of traction, tough competition, or difficult time fundraising. The best time to sell your startup is when you have many options. The following is a brief overview of the steps that go into valuing your company, garnering interest in it and navigating through the acquisition process. Starting Acquisition Talks How Your Startup Will be Valued Getting Offers Closing. Negociation.