Investors love great ideas — but they fund numbers.
A strong story can get you attention,
but solid metrics get you investment.
When you walk into a pitch meeting, investors are asking one simple question:
“Can this business grow sustainably and profitably?”
Your answer isn’t in words — it’s in your metrics.
Let’s break down the 7 key metrics investors care about most, and how to track them smartly 👇
1️⃣ Revenue Growth Rate
This is the clearest sign that your business is gaining momentum.
Formula:
(Current Revenue – Previous Revenue) ÷ Previous Revenue × 100
💡 Example:
If your revenue last month was ₹5L and this month it’s ₹6L → growth rate = 20%.
✅ What it tells investors:
Your business is growing consistently — not just surviving.
💬 Investors want steady month-over-month growth, not one-time spikes.
2️⃣ Gross Margin
Your gross margin shows how efficiently you turn sales into profit.
Formula:
(Revenue – Cost of Goods Sold) ÷ Revenue × 100
💡 Example:
If you earn ₹10L and your costs are ₹6L → gross margin = 40%.
✅ What it tells investors:
You have a scalable, profitable model — not one that depends on volume alone.
💬 Healthy gross margins = financial resilience.
3️⃣ Burn Rate & Runway
Burn Rate = how much money you spend every month.
Runway = how many months before you run out of cash.
Formula:
Runway = Cash Available ÷ Monthly Burn
💡 Example:
If you have ₹24L and spend ₹4L/month → you have a 6-month runway.
✅ What it tells investors:
You know how to manage resources.
If you can control burn and extend runway, your business is operationally strong.
💬 Startups don’t die because of no profit — they die because of no cash.
4️⃣ Customer Acquisition Cost (CAC)
CAC shows how much it costs to get one paying customer.
Formula:
Total Sales & Marketing Spend ÷ Number of New Customers
💡 Example:
If you spend ₹1L on ads and get 100 customers → CAC = ₹1,000.
✅ What it tells investors:
You understand your acquisition system — and it’s efficient.
💬 If CAC keeps dropping while growth continues → investors love it.
5️⃣ Customer Lifetime Value (LTV)
LTV shows how much revenue a customer generates before they churn.
Formula:
Average Purchase Value × Purchase Frequency × Customer Lifespan
💡 Example:
If an average customer spends ₹1,000 per month and stays 12 months → LTV = ₹12,000.
✅ What it tells investors:
Your customers don’t just buy — they stay.
💬 High LTV means your brand creates loyalty, not transactions.
6️⃣ LTV : CAC Ratio
This ratio tells investors how profitable your acquisition strategy is.
Formula:
LTV ÷ CAC
💡 Example:
If your LTV = ₹12,000 and CAC = ₹3,000 → Ratio = 4:1
✅ Investors’ rule of thumb:
LTV : CAC ≥ 3:1 = strong business model
💬 If your ratio is under 2:1, it means your growth isn’t efficient yet.
7️⃣ Monthly Recurring Revenue (MRR) or Annual Recurring Revenue (ARR)
If your startup has subscriptions, MRR or ARR shows your predictable income flow.
Formula:
MRR = Total number of paying users × Average revenue per user (ARPU)
💡 Example:
1,000 users × ₹499 = ₹4,99,000 MRR
✅ What it tells investors:
You have stable, repeatable income — the strongest sign of long-term potential.
💬 Investors love predictability. It means scalability is real.
⚙️ Bonus: Retention Rate
While not always listed, this metric matters deeply.
If customers keep coming back — your product works.
Formula:
((End Customers – New Customers) ÷ Start Customers) × 100
💡 Retention shows satisfaction — and satisfaction builds valuation.
💡 Alepp Platform Insight
At Alepp Platform, we help founders turn data into investor confidence.
Through our Investor Readiness & Financial Clarity Frameworks, we help you:
✅ Identify your key growth metrics
✅ Build dashboards that track them in real time
✅ Present your business story through numbers that make sense
Because investors don’t fund potential —
they fund proof of performance.
🚀 Conclusion
A great idea excites investors.
A clear story inspires them.
But solid metrics convince them.
💡 Remember:
You can’t manage what you don’t measure — and you can’t raise what you can’t explain.
Track smart.
Optimize fast.
Pitch with confidence.
Your numbers are your credibility.