The exact SaaS metrics Series A and B investors want to see, benchmark ranges, common definitions, and the numbers that quietly kill rounds when they're weak.
Different investors weight metrics differently, but a small set consistently drives Series A and B decisions. Knowing definitions, current benchmarks, and how to present them prevents late-stage diligence surprises.
Annual Recurring Revenue at close of month, and the trailing 12-month growth rate. Series A benchmarks in 2026: $1–3M ARR with 3–4× YoY growth for a strong round. Series B: $8–15M ARR with 2–3× YoY.
Revenue from existing customers this year vs last year, including expansion and churn. 110%+ is strong; 120%+ is exceptional. Below 100% raises fundamental questions about product-market fit that no growth rate compensates for.
Software gross margin should be 70%+ at scale. Below 60% suggests infrastructure or services drag. Investors will ask what's in COGS — hosting, support, professional services allocation, and payment processing.
Months of gross profit required to recover customer acquisition cost. Under 12 months is efficient; 12–18 is acceptable; over 24 months is a fundamental efficiency problem. Show it by channel to expose your best acquisition motion.
Net burn divided by net new ARR. Under 1× is exceptional; 1–2× is strong; 2–3× is acceptable at early stages; over 3× is a red flag in the current environment. This has replaced Rule of 40 as the primary efficiency metric.
Report both. Logo churn matters for SMB; revenue churn matters for enterprise. Cohort by month or quarter, and disclose whether you exclude any accounts (never exclude paying customers who canceled).
Investor directory · Fundraising library · Articles A–Z · Company funding database