The Short Answer
KPIs are the specific metrics you've chosen as the most important indicators of your startup's success. Unlike general metrics, KPIs are targets you actively manage toward. They should be few, measurable, and directly tied to your strategic goals.
Less is more. Most startups should have 3-5 KPIs at any given time. Too many KPIs means nothing is truly prioritized.
KPIs vs. Metrics
While you might track dozens of metrics, KPIs are the vital few that matter most right now. They're the numbers you review weekly, set targets for, and hold people accountable to. Choosing the right KPIs focuses your entire organization.
KPIs should change as your startup evolves. What matters at pre-seed (validation signals) is different from Series A (scalable growth). Regularly review whether your KPIs still reflect your priorities.
KPIs by Startup Stage
Different stages require different focus areas:
| Stage | Focus | Key KPIs |
|---|---|---|
| Pre-Seed | Problem validation |
|
| Seed | Product-market fit |
|
| Series A | Scalable growth |
|
| Series B+ | Market leadership |
|
How to Set Effective KPIs
Follow this framework to choose the right KPIs:
Start with your one goal
What's the single most important thing to achieve this quarter? Your KPIs should all ladder up to this goal.
Choose leading indicators
Pick metrics you can influence, not just outcomes. If revenue is the goal, track the activities that drive revenue.
Set specific targets
KPIs without targets aren't KPIs. Set ambitious but achievable numbers based on data and benchmarks.
Assign ownership
Every KPI needs an owner who is accountable for hitting the target and reporting on progress.
Review and adapt
Check KPIs weekly. If you're consistently missing or exceeding targets, adjust them. If they're not driving the right behavior, change them.
Key Takeaways
- KPIs are the vital few metrics you actively manage toward targets
- Choose 3-5 KPIs maximum at any given time
- KPIs should change as your startup stage and priorities evolve
- Every KPI needs a specific target and an accountable owner
- Focus on leading indicators you can influence, not just lagging outcomes
