Founder Metrics – Page 6

Total Funding is the cumulative amount of external capital a company has raised across all financing rounds, from seed through late-stage investment.

Transaction Recency is the average number of days since a customer's last purchase, measured across all repeat buyers. It indicates how quickly customers return to make additional purchases and is most useful for businesses where repeat transactions are expected, such as e-commerce, retail, and usage-based software.

Viral coefficient is the number of new users or customers the average existing customer generates through referrals or sharing. A viral coefficient above 1 means each customer brings in more than one additional customer, compounding growth over time. It is used to measure organic growth momentum and to predict future customer acquisition velocity.

Weighted Annual Contract Value (WACV) calculates the average contract dollar value with a weighted average proportional to the value of the contract. Essentially, higher value contracts are assigned more importance when calculating the total average contract value of a business. This approach is helpful to companies that have widely varying customer concentration by accurately calculating an ACV that is not skewed by contracts with low dollar value.

Years Since Founding is a scale metric that counts the number of full years a company has been in operation, from its founding date to the current year.