We beget the privilege of meeting with thousands of entrepreneurs every year,and in the course of those discussions are presented with all kinds of numbers, measures, or metrics that illustrate the promise and health of a specific company. Sometimes,however, the metrics may not be the best gauge of what’s actually happening in the trade, or people may use different definitions of the same metric in a way that makes it hard to understand the health of the trade.
So,while some of this may be obvious to many of you who live and breathe these metrics all day long, we compiled a list of the most common or confusing metrics. Where appropriate, or we tried to add some notes on why investors focus on those metrics. Ultimately,though, noble metrics aren’t about raising money from VCs -- theyre about running the trade in a way where you know how and why certain things are working (or not), or can address or adjust accordingly. MORE
Source: a16z.com