The venture capital landscape has shifted, and it hasn’t shifted back.

The period of cheap money is well behind us. Interest rates are higher, fundraising takes longer, and investors are far more selective about where capital goes. For startups and scaleups, that has fundamentally changed how performance is measured.

This isn’t just about extending runway or slowing hiring. It’s changed the KPIs that matter in boardrooms, investor updates, and fundraising conversations.

Why the Old Metrics Aren’t Enough Anymore

For a long time, growth was the headline.

Along with Customer Acquisition Cost (CAC) and Lifetime Value (LTV), while still important, they no longer dominate discussions in boardrooms.

Founders focused on month-on-month increases in a single North Star metric: users, transactions, GMV, MAUs. As long as the chart pointed up and to the right, other questions were often secondary.

Those metrics still tell part of the story, but they no longer prove business health.

What investors are looking for now is evidence of discipline. Not just ambition, but control. Not just momentum, but resilience.

That means KPIs have evolved.

The Metrics That Matter in the Current Environment

Revenue Quality, Not Just Growth

Annual Recurring Revenue (ARR) has become central for SaaS businesses, but the thinking applies well beyond subscriptions.

Even if you don’t run a SaaS model, investors now want to understand:

• How much revenue is genuinely repeatable
• What portion of revenue is predictable

What relies on constant sales and marketing effort

Being able to separate “reliable” revenue from effort-driven revenue is critical, particularly when fundraising in a tougher market.

Efficiency of Growth

Burn multiple has become a far more common discussion point.

It looks at how much cash the business burns to generate each unit of new revenue. Unlike CAC, which often sits narrowly in sales and marketing, burn multiple reflects the efficiency of the entire business.

In an environment where capital is expensive, inefficient growth is penalised quickly.

Balanced Performance Measures

The Rule of 40 has moved from being a SaaS benchmark to a general shorthand for balance.

High growth with no regard for losses is no longer enough. Investors want to see an understanding of how growth and profitability trade off against each other, even if profitability is still some way off.

This is more about demonstrating that leadership understands the levers.

A Credible Path to Profitability

EBITDA margin has moved back into focus.

For years, EBITDA was often ignored in early-stage businesses because the numbers were deeply negative and growth was the priority. That tolerance has gone.

Today, investors expect:

• A clear understanding of what the steady-state business could look like
• Realistic assumptions around margin
• Visibility on when losses start narrowing meaningfully

You don't necessarily need to show a profitable business from day 1, but rather you want to show that profitability isn’t accidental or theoretical.  Unit Economics and the reasons behind the step changes is also useful here.

Speed of Payback

Payback period has become a practical replacement for long-term LTV assumptions.

Rather than debating lifetime value models that rely on optimistic churn assumptions, investors increasingly want to know:

• How much it costs to acquire a customer
• How long it takes to recover that cost in revenue

Shorter payback equals lower risk. In uncertain markets, that matters.

Productivity and Leverage

Productivity metrics are under far more scrutiny.

Revenue per head, contribution per employee, or output per team are now common questions. This reflects a broader focus on right-sizing and operating leverage across portfolios.

These metrics are best used internally over time. Comparing against “industry averages” can be misleading, as definitions vary widely.

What matters is whether the business is becoming more efficient as it grows.

Competitive Positioning, Not Just Market Size

Market size still matters, especially at early stages. But as companies move from startup to scaleup, the focus shifts.  Investors want to understand:

• How the business is winning
• Where it is outperforming competitors
• What makes its position defensible over time

This is where metrics start to support strategy, not just valuation narratives.

Impact and Responsibility

Finally, impact metrics are no longer optional.  Although downplayed a little in this market, it's still important in the European market.

Beyond financial performance, investors are asking about:

• Employee engagement and retention
• Diversity and inclusion
• Environmental and social impact

How the business operates and the risks it carries reputationally and operationally as it scales.

What This Means for Finance Leaders

The shift in KPIs isn’t about chasing new numbers for the sake of it.

It reflects a broader change in expectations. Investors want to back businesses that are ambitious, but also controlled. Growth still matters, but it needs to be supported by discipline, efficiency, and credible decision-making.

For finance leaders, this is about guiding that story with substance.

Mastering these KPIs is about building a business that can withstand pressure and make deliberate choices in a more demanding environment.

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