Funding glossary
Metrics terms
Every metrics term in our startup funding glossary, explained in plain English for Indian founders. 9 terms.
ARR (Annual Recurring Revenue)The annualised value of all active, recurring subscription contracts — the standard top-line metric for SaaS and subscription businesses.Learn more Burn rateThe rate at which a startup spends its cash reserves each month, before or after accounting for revenue.Learn more Customer Acquisition Cost (CAC)The total cost — sales, marketing, and related overhead — incurred to acquire one new paying customer.Learn more Gross Merchandise Value (GMV)The total value of all goods or services transacted through a marketplace or platform in a given period, before deducting any fees or refunds.Learn more Lifetime Value (LTV)The total gross profit a business expects to generate from a single customer over the entire duration of the relationship.Learn more MRR (Monthly Recurring Revenue)The predictable, recurring revenue a subscription business collects or contractually commits to in a single month.Learn more RunwayThe number of months a startup can operate before running out of cash at its current burn rate.Learn more TractionMeasurable evidence that a startup's product is solving a real problem and gaining adoption in its target market.Learn more Unit economicsThe revenue, costs, and profit attributable to a single unit of a business — typically one customer or one transaction — used to judge whether the model scales profitably.Learn more