Key Performance Indicator (KPI)
Definition
A KPI is a metric chosen to represent progress toward a goal: revenue growth, retention, activation rate, burn multiple, or whatever the stage demands.
How it comes up in fundraising
Fundraising decks lead with the two or three KPIs investors in the category actually benchmark, backed by clean definitions in the data room.
Frequently asked questions
Which KPIs do investors care about most?
Stage-dependent: retention and engagement early, ARR growth and net revenue retention at seed and Series A, efficiency metrics throughout.
What is a vanity metric?
A number that grows without indicating business health, like cumulative downloads; investors discount decks built on them.
Put this term to work
Definitions win negotiations only when you are in one. Find the investors who fund your stage and start the conversation.
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