What key figures should you know before seeking funding for your startup?

When you’re preparing to raise capital, your pitch deck is not just about the story — it’s about the numbers. Investors want to see if your business is viable, scalable, and worth their money. Before approaching investors, you should have a clear understanding of certain key figures that reflect the health and potential of your startup. Here are the most important ones to focus on:

1. Revenue and Growth Rate

Investors want to see that your startup is generating revenue and growing consistently. Be ready to present:

• Current monthly or annual revenue.

• Month-over-month (MoM) or year-over-year (YoY) growth rates.

• Future revenue projections based on realistic assumptions.

A steady growth rate, even if modest, signals product-market fit and operational traction.

2. Customer Acquisition Cost (CAC)

CAC measures how much you spend to acquire a new customer.

CAC = Total sales & marketing spend / Number of new customers acquired

Low CAC suggests efficient marketing and sales, while a very high CAC could indicate unsustainable practices.

3. Customer Lifetime Value (LTV)

This is the total revenue you expect from a customer over the time they use your product.

LTV = Average purchase value × Purchase frequency × Customer lifespan

Investors compare LTV to CAC. A healthy ratio is usually 3:1 or higher, meaning you earn at least 3x what you spend to acquire a customer.

4. Burn Rate and Runway

Your burn rate shows how much cash your startup is spending each month, and your runway tells investors how long you can survive before needing more money.

Runway = Current cash / Monthly burn rate

Ideally, you should have at least 12–18 months of runway post-funding.

5. Gross Margins and Unit Economics

Gross margins reflect how much money you keep after covering the cost of goods sold (COGS), and unit economics shows whether each customer or transaction is profitable.

Unit economics = Revenue per customer – CAC & COGS

Strong margins and positive unit economics reassure investors that your business can scale profitably.

Why these numbers matter

Investors see hundreds of pitches — clear, realistic, and data-backed metrics make yours stand out. They’re not just betting on an idea, but on a business that can grow sustainably and deliver returns.

Final tip

Before pitching, make sure your numbers are accurate, validated, and that you can explain the assumptions behind them. If you’re unsure, work with an advisor, accountant, or mentor to refine your financial model.

Raising money isn’t just about telling a great story — it’s about proving your business can deliver results. With these figures in hand, you’ll be better prepared to impress investors and secure funding.