As a founder preparing to pitch your bootstrapped startup, you want to shine, that spark of traction, clarity, and potential. VCs, true to their data-driven nature, look at numbers. But which ones really make them say yes?
1. Revenue & Growth: The Momentum Magnet
Monthly or Annual Recurring Revenue (MRR/ARR) signals stability and predictability, especially important for SaaS or subscription models. VCs typically look for MRR north of ₹41L, aiming toward ₹66L in the near term to justify ₹50–83Cr valuations.
Growth rate is equally crucial. Early-stage investors usually expect businesses to grow by 200% to 300% each year, or 20% each month. This shows that the business fits well in the market and is gaining momentum.
2. Sustainable Economics: CAC, LTV & Retention
Customer Acquisition Cost (CAC) and Lifetime Value (LTV) are foundational for understanding unit economics. A healthy LTV:CAC ratio of 3:1 or higher signals strong business health meaning each rupee spent brings useful, long-term return.
High retention and low churn further reinforce trust in your product’s stickiness.
3. Market Potential: TAM & Moats
A clearly defined Total Addressable Market (TAM) shows you’re chasing a big opportunity. VCs want to see ambition backed by understanding.
Add defensibility, like IP, regulatory barriers, network effects, and you stand out. These factors define why you can win and win sustainably.
4. Business Fundamentals: Runway & Margins
A realistic look at your runway, how long your current cash can last is a bear necessity. VCs back founders who know how to use money wisely.
High gross margins, especially in SaaS (often between 75% and 85%), show that you can grow your business without financial pressure.
5. People & Founder-Market Fit
Numbers matter, but they often start with the person behind them. VCs invest in founders who understand their customers, can execute with resilience, and inspire others to follow. That founder-market fit can turn good ideas into great ones.
Summary Table: Metrics
| Metric | The Core Insight |
| MRR/ARR & Growth Rates | Signals traction and scalable momentum |
| CAC & LTV Ratio | Reflects sustainable unit economics |
| Retention / Churn | Shows product stickiness and customer value |
| TAM & Moats | Highlights ambition and defensibility |
| Runway & Margins | Ensures fiscal discipline and growth potential |
| Founder-Market Fit | Aligns execution capability with vision |
In the Indian startup ecosystem, whether you’re lean or bootstrapped, focusing on revenue, growth, economics, market size, and your own story gives you the strongest shot at turning numbers into a nod or better, a “Yes.”
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