If you’re reading this article, it’s because you’ve already secured funding for your startup or SME. Whether it happened recently or some time ago is irrelevant when it comes to understanding which financial metrics a startup must report to its investors.
Many founders believe that reporting simply means sharing a few metrics and summarizing how the month went. But investors are not just looking for information. They want to understand how the business is evolving, the quality of its growth, and the level of control the company has over cash flow and execution.
Although we’ll walk you through the most important metrics, they should never be analyzed in isolation. What truly matters is the relationship between them and what they reveal about the business model.
Sometimes, focusing on the simplest and most relevant metrics is far more effective than relying on more complex indicators such as the Rule of 40 or the SaaS Magic Number — just like when building the ideal pitch deck. Let’s go through the 10 metrics that virtually every investor expects to review on a monthly basis, especially in SaaS startups or businesses with recurring revenue models. Afterwards, we’ll explain why these are the most important ones.
Cash at the end of the period
This is the amount of cash the startup has available at the end of each month.
It may seem like a simple metric, but it is one of the most important because it reflects the company’s actual ability to continue operating. Investors want to understand how much room the startup has before requiring additional funding.
More than the number itself, what truly matters is its evolution over time and whether the company maintains proper control over liquidity.
Net cash burn
Net cash burn measures how much net cash the startup consumes each month.
This type of burn rate is calculated as the difference between actual cash outflows and inflows during a specific period.
Net Cash Burn= Cash Outflows − Cash Inflows
This metric helps investors understand whether growth is sustainable or whether the company is burning cash too aggressively relative to the revenue it generates.
Runway
Runway indicates how many months the startup can continue operating with its current cash balance while maintaining the existing burn rate.
Runway = Avaliable cash / Monthly Net Burn
This is a critical metric because it determines the company’s margin for maneuver. The shorter the runway, the higher the financial pressure and the weaker the company’s negotiating position with future investors.
MRR / ARR
MRR (Monthly Recurring Revenue) and ARR (Annual Recurring Revenue) represent the startup’s monthly and annual recurring revenue.
These are fundamental metrics in SaaS business models because they measure recurring growth and revenue predictability.
Investors do not only analyze the volume of MRR or ARR, but also:
- the growth rate,
- the level of recurrence,
- and the stability of those revenues.
Churn
Churn measures the loss of customers or revenue during a given period.
A high churn rate usually signals product, pricing, or customer satisfaction issues.
In SaaS startups, controlling churn is just as important as growth, because constantly acquiring customers loses value if users quickly abandon the platform.
Net Revenue Retention (NRR)
NRR measures the percentage of recurring revenue retained from an existing customer cohort, including expansions and cancellations.
It is one of the most closely monitored metrics by venture capital funds because it reflects the true quality of revenue.
An NRR above 100% means the startup can grow even without acquiring new customers, thanks to upselling, expansion, or increased usage.
ACV (Annual Contract Value)
ACV represents the average annual value of signed customer contracts.
It helps investors understand:
- The average account size.
- The company’s commercial positioning.
- The type of customer the startup is targeting.
It also helps interpret metrics such as CAC or payback more accurately.
LTV (Lifetime Value)
LTV estimates the total revenue a customer generates throughout their entire relationship with the company.
This metric is essential for understanding the long-term value each customer brings and whether customer acquisition is economically sustainable.
The higher the LTV relative to CAC, the more efficient the business model tends to be.
CAC (Customer Acquisition Cost)
CAC measures how much it costs to acquire a new customer.
It includes marketing, sales, and commercial acquisition expenses.
It is one of the most important metrics for analyzing growth efficiency. Rapid growth stops being positive if acquisition costs become excessively high.
CAC Payback
CAC Payback measures how long it takes the startup to recover the cost of acquiring a customer through the margin generated by that customer.
It is usually expressed in months.
The shorter the payback period:
- The lower the pressure on cash flow.
- The more efficient the growth.
- The easier it becomes to scale the business without consuming excessive capital.
What do investors expect from financial reporting?
As we mentioned earlier, good reporting is not about presenting dozens of KPIs. It is about selecting the right metrics and explaining what is actually happening behind them.
When a fund reviews a startup’s monthly reporting, it is usually trying to answer four key questions:
- Is the company growing?
- Is that growth efficient?
- Is cash under control?
- Does the team truly understand the business?
That is why metrics such as ARR, burn rate, or CAC are never interpreted in isolation. They are analyzed together to understand the quality of growth and the company’s financial sustainability.
A startup may grow quickly and still raise concerns if burn increases too aggressively, CAC deteriorates, or runway becomes dangerously short. Likewise, a company may maintain significant losses and still inspire confidence if it demonstrates efficiency, strong retention, and solid financial control.
Monthly reporting exists precisely for this purpose: to transform financial data into a clear and understandable narrative for investors.
Cómo podemos ayudarte desde The Startup CFO
At The Startup CFO, we work with startups that need to professionalize their financial reporting and build metrics that truly help drive decision-making and generate investor confidence.
We integrate as part of your team to structure dashboards, define financial KPIs, and connect reporting with the company’s operational and strategic reality.
Because well-designed metrics are not just useful for reporting. They help you understand your business more deeply, grow with greater control, and prepare future funding rounds from a much stronger position.
