When investors see our business for the first time, they need to wrap their head around it. It's like films - they often start with a bit of scene-setting before jumping in with the plot.
Investors also like to hear the main numbers up front. They're pitched all day -- certain numbers tell them if your business matches their selection criteria to avoid wasting time talking about bad fits.
Andreesen Horowitz explains:
When initially evaluating businesses, investors often look at GMV, revenue, and bookings first because they're an indicator of the size of the business. Once investors have a sense of the the size of the business, they'll want to understand growth to see how well the company is performing. These basic metrics, if interesting, then compel us to look even further.
They then go on to explain 16 commonly misused metrics.
