How to Impress VCs with your Startup Model (Part 1): Tactical Tips for Financial Modeling

Here’s what we look for in a model at BBGV

How we use the financial model to analyze an investment at BBGV

  • For companies that are post-launch, strong revenue growth is critical to a successful round. Triple, triple, double YoY growth is targeted for most SaaS businesses and MoM growth of 20%+ is usually considered strong across industries.
  • A16z provides an overview of 16 startup metrics to track for all companies as well as specific metrics for SaaS businesses to track and marketplace metrics.
  • For consumer products businesses, investors look for signs of traction — depending on the company and its timeline, traction may be demonstrated by actual revenue or by other signs of demand for the product including a waitlist or a strong community. By the Series A, companies should target $500K+ in MRR. This post by the team at Ro provides context on other metrics that are important to track for consumer products startups.
  • LTV/CAC targets are typically 3x+ but it may be too early for this metric to be meaningful at the pre-seed / seed stage.

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BBG Ventures is an early-stage fund backing female founders with big ideas that will reshape the way we live.

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BBG Ventures

BBG Ventures

BBG Ventures is an early-stage fund backing female founders with big ideas that will reshape the way we live.

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