{"id":10261,"date":"2019-03-29T15:21:00","date_gmt":"2019-03-29T19:21:00","guid":{"rendered":"https:\/\/www.sage.com\/en-us\/blog\/?p=10261"},"modified":"2026-02-12T05:16:38","modified_gmt":"2026-02-12T10:16:38","slug":"top-5-saas-metrics-investors-want-to-see-by-venture-stage","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-us\/blog\/top-5-saas-metrics-investors-want-to-see-by-venture-stage\/","title":{"rendered":"Top 5 SaaS metrics investors want to see \u2013 by venture stage"},"content":{"rendered":"
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\n\t\t\t\t\t\tTop 5 SaaS metrics investors want to see \u2013 by venture stage\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t

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\n\t\t\t\n\t\t\t\t\"David\t\t\t\tDavid Appel<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n

If you don\u2019t prepare ahead of time, you could get stuck not producing the key SaaS metrics<\/a> that investors want to see when they\u2019re considering whether to invest in your next round. Not preparing the right SaaS metrics by venture stage for your VCs can ultimately reduce valuation, or even kill your fund raise.<\/p>\n\n\n\n

In this post, we\u2019re going to share some powerful insights into the SaaS metrics investors want to see from SaaS start-ups<\/a> depending on their stage. These recommendations are shared by fellow SaaS finance leaders and their investors, who participated in several conversations at the inaugural Modern SaaS Finance Summit during SaaStr in February 2019. We\u2019ve created this simple guide for finance leaders by introducing the key objective with each stage of the company, what it means, how to measure it, how the finance team plays a role, and the processes that must be built to make this objective successful.<\/p>\n\n\n\n

Our former board member, Jeff Epstein<\/a>, operating partner at Bessemer Venture Partners, discussed the use of funds and key measures you need to focus on to get to the next stage.  Similarly, several finance leaders who have successfully guided their companies through growth, discussed how they scaled the people, process, and technology, including using Sage Intacct<\/a>, to prepare for each stage on the journey to $100 million and beyond.<\/p>\n\n\n\n

We will be having another Modern SaaS Finance Summit in NYC on May 16<\/a> and encourage you to join us to learn how you can apply these principles to your SaaS start-up.<\/p>\n\n\n\n

1.Seed: Prove SaaS Product\/SaaS Market fit<\/strong><\/h2>\n\n\n\n

What it means:<\/strong> Secure and serve those first 10 ecstatic customers. You want 10 evangelists more than you want 100 customers that use your product, but wouldn\u2019t advocate for it.<\/p>\n\n\n\n

Key Metric:<\/strong> Cash management is the lifeblood for early stage companies. Don\u2019t run out of cash before you figure out your market.<\/p>\n\n\n\n

Finance\u2019s responsibility:<\/strong> In this case, it isn\u2019t even done by finance. It\u2019s done by the outsourced bookkeeper, who pays bills out of the shoe-box.<\/p>\n\n\n\n

Processes:<\/strong> Keep it simple in just paying bills and collecting cash in a simple bookkeeping program.<\/p>\n\n\n\n

2.Series A: Prove the SaaS Revenue Model<\/strong><\/h2>\n\n\n\n

What it means:<\/strong> Seventy-five percent of the sales team is meeting quota, and you\u2019re driving yearly revenue at triple growth year over year.<\/p>\n\n\n\n

Key Metric:<\/strong> Hone your product\u2019s unit economics. In general, you\u2019re looking for a CAC payback of less than two years, unless CLTV is high.<\/p>\n\n\n\n

Finance\u2019s responsibility:<\/strong> Hire a determined and hungry finance expert\u2013generally at the director level\u2014who can build processes but who\u2019s also willing to get their hands dirty and do work.<\/p>\n\n\n\n

Processes:<\/strong><\/p>\n\n\n\n