Founder Metrics – Page 3

Disputed Charges measures the total value of charges that have been challenged and may be reversed. This metric represents the amount of money that could potentially be deduced from your net charges.

Changes Count measures the total number of Charges you have made to your customers. Use this metric to have an overall view of how many payments you have accepted from your customers for the products or services you sold.

Employee Growth by Function measures how each organizational function is forecasted over a 1-5 year period. This hiring plan is typically factored into the financial model.

Failed Charges represents the total monetary value of any payments that have failed for reasons including declined payments, blocked payments, and invalid payments.

Failed Charges Count is the total number of payments that have failed for reasons including declined payments, blocked payments, and invalid payments.

Forecasted Number of Customers gives you the predicted number of customers your company will have over a given period of time. Though there are multiple ways to forecast customer count, the simplest calculation is to multiply your leads with your average close rate.

Free Cash Flow (FCF) is the cash a business generates after paying for operating expenses and capital expenditures — the money available to reinvest, repay debt, or return to shareholders.

Growth in ARR Multiple Since the Previous Raise measures the percentage change in a company's ARR Multiple between its last funding round and the current period. ARR Multiple is the ratio of a company's valuation to its Annual Recurring Revenue (ARR).

Growth in Revenue Since the Previous Raise measures how much a company's revenue has increased since its last capital funding round. It shows how effectively raised capital translated into revenue growth.

Growth in Valuation Since the Previous Raise is the percentage increase in a company's valuation from one funding round to the next. It shows how much value the company created between raises.

Hype Factor is an efficiency metric that shows how efficiently a company converts capital raised into ARR. SaaS companies convert venture capital into two things: annual recurring revenue (ARR) and hype. ARR has direct value as every year it turns into GAAP revenue. Hype has value to the extent it creates halo effects that drive interest in the company that ultimately increase ARR.

The Invoices metric counts the number of invoices you have sent to your customers. It is helpful to track Invoices to keep a tab on what is owed to you.