A founder’s guide to the essential benchmarks — CAC payback, retention, efficiency and growth — that determine whether investors see your business as fundable.
“A payback period under six months signals operational excellence and product-market fit. You’re not just acquiring customers — you’re monetising them efficiently.”
Terrifc articulation of how fundability has shifted from narrative to numbers. The CAC payback threshhold framing is especialy powerful because it cuts thru the usual 'hypergrowth' fog and exposes what actually matters: how soon your acquistion engines become self funding. It also sidesteps the trap of celebrating vanity metrics like MRR growth without looking at whether you're burning faster than you're earning.
I fully agree. Clear metrics for SAAS. It only leaves the question open: how to improve your metrics, because no one has all of them at the max.
Take revenue growth. In order to achieve it, you have to invest in marketing, perhaps setting up local support teams. In which countries are you going to do this, and where not? That depends on the market (size) and your competition.
I strongly believe in making a country-by-country growth plan, perhaps first for just a few countries.
That's right. Find an uncomfortably narrow PMF & GTM - nail that's ie say "no" to most options. Then add another PMF & GTM. Like building blocks. But maximize the ones that are working - this is financing the business 👏 great comments - thanks for sharing your wisdom
“A payback period under six months signals operational excellence and product-market fit. You’re not just acquiring customers — you’re monetising them efficiently.”
Today I learned! Thanks! Great post :)
If you're holding on the customers (net negative churn) and under 6mth CaC then poor of the petrol into CaC 💲📈 LFG
This isn't just a checklist; it's a structural guide to building a resilient business...Great share, man!
Thanks Sharyph. 🎉
Hell yeah!
Thanks for sharing this. It’s helpful seeing how investors interpret the numbers we work with every day
Indeed. I'm glad you liked it 🌞
I found this really interesting as a self-funded developer…I need to care about these metrics, too! 😆
It's widely applicable ✨ glad you liked it Karen 🎉
💯
Terrifc articulation of how fundability has shifted from narrative to numbers. The CAC payback threshhold framing is especialy powerful because it cuts thru the usual 'hypergrowth' fog and exposes what actually matters: how soon your acquistion engines become self funding. It also sidesteps the trap of celebrating vanity metrics like MRR growth without looking at whether you're burning faster than you're earning.
The later the funding stage the more it's financial diligence. You've nailed that for sure
Investors prioritise risk management before they look at revenues.
Revenue growth becomes meaningful when a transferable value is created.
Indeed. Nice and clear
I fully agree. Clear metrics for SAAS. It only leaves the question open: how to improve your metrics, because no one has all of them at the max.
Take revenue growth. In order to achieve it, you have to invest in marketing, perhaps setting up local support teams. In which countries are you going to do this, and where not? That depends on the market (size) and your competition.
I strongly believe in making a country-by-country growth plan, perhaps first for just a few countries.
That's right. Find an uncomfortably narrow PMF & GTM - nail that's ie say "no" to most options. Then add another PMF & GTM. Like building blocks. But maximize the ones that are working - this is financing the business 👏 great comments - thanks for sharing your wisdom