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STARTUP-FINANCE4 MIN READ

Startup Finance Metrics Deck

Recall the finance metric to use for common startup operating questions.

Runway Which metric answers how much decision time the startup has left? Runway, calculated from cash and net burn. Use base and stressed runway when committed spend or collections timing could change the answer. CAC payback Which metric answers how long acquisition spend takes to return as gross profit? CAC payback, measured as acquisition cost divided by monthly gross profit. Use gross profit per customer, not revenue, or payback will look too optimistic. Revenue quality Gross margin or revenue growth: which answers whether revenue scales well? Use revenue growth for speed; use gross margin for business-model quality. Investor objection Your…

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