Why KPIs are important to crowdfunded companies and how to engage investors with KPI dashboards
KPIs (key performance indicators) tell a lot about your company's story to your investors. Key performance indicators are quantifiable measures which can be used to measure the company's success. KPIs are the quickest channel of visualizing your company's performance and how you are reaching key business objectives to your current and possible future investors. By sharing your KPIs you can maintain a transparent relationship with your investors and ensure their engagement to your progress.
KPIs are the core bone of the analytical analysis and they show the indication for future without emotional connection or rhetoric. KPIs also give insight of the performance to the management making it possible to improve and plan the future steps. Metrics make it easy to understand how a business model is built up and performing and is the key for success, both for improving the status quo to reach targets and also for attracting and engaging investors.
KPI Metrics are key to understand business models and performance
Sharing your KPIs regularly and the efforts and actions to improve them will engage your investors and keep them alongside every step of the way. Feeling connected and informed is one of the most important factors the investors consider when deciding on investing more. KPIs build rational motivation among investors, which is a big contributor to investor engagement. In order to engage investors by sharing KPIs, it is important to open up the progress and actions behind them to your investors.
Number of users Number of customers Number of investors Number of products sold Number of partners Number of development hours
Companies in Sales Funnel Value of sales funnel CAC (Customer acquisition cost) ARR(Annual recurring revenues) Churn
Share Price Customer Lifetime Value ETA to product launch Social Media Followers Social Media Likes Social Media traffic
HOW TO CHOOSE THE RIGHT KPIs for crowdfunded companies?
The choice of KPIs is different for every single company, but they should answer the question "what objectives are you trying to monitor?". There is no universal list of which KPIs every company should focus on and KPIs vary also from stage to stage; during pre-revenues KPIs might be more about user growth and development whereas later on they tell story about revenues, costs and margins. Starting point of deciding your KPIs should be understanding which indicators give your business value that turns into profit and how these indicators can be improved. For each company the set of KPIs is likely to be different, since they should reflect what you are focusing on to create business value and which indicators reflect your progress.