The Four Marketing Metrics Investors Want to See

Frankie Hutton

Read • 3 min

Pre-Seed
Seed
Series A

Founders often struggle to understand what investors want from a marketing strategy. Here’s what they look for and why these four key metrics can make or break your fundraising success.

Raising investment can be a daunting process - especially if you’re a first-time founder.

You’ve built a product, assembled a team, and started generating revenue, but when it comes to talking to investors, they want numbers that prove your business is scalable and sustainable.

Marketing performance plays a huge role in this. Yet, many founders either overcomplicate their marketing reports or fail to track the right numbers. At Active Profile, we work with scaling businesses to sharpen their investor messaging and help them tell a story that resonates.

So, what are the marketing metrics that truly matter to investors? Based on our experience and insight from Praetura’s work supporting early-stage businesses, these four stand out.

1. Customer acquisition cost (CAC)🔗

What it is: The total cost of acquiring a new customer.

Why investors care: Investors need to understand how much it costs you to bring in each new customer. If CAC is too high relative to revenue, it suggests your business might struggle with long-term profitability.

How to calculate it:

Key insight: Founders often overlook CAC efficiency. If you can demonstrate that you’re acquiring customers at a lower cost than competitors, it’s a strong selling point.

2. Lifetime value to customer acquisition cost ratio (LTV:CAC)🔗

What it is: A measure of the value a customer brings to your business over time compared to what it costs to acquire them.

Why investors care: A strong LTV:CAC ratio indicates sustainability. Most investors want to see a ratio of at least 3:1, meaning customers generate three times the revenue of their acquisition cost.

How to calculate it:

Key insight: Investors see LTV:CAC as a sign of business viability. If your ratio is too low, they may worry about long-term profitability.

3. Net new monthly recurring revenue (MRR) growth rate🔗

What it is: A measure of how much recurring revenue your business is adding each month, accounting for new sales, churn, and upsells.

Why investors care: Investors want to see predictable revenue growth. Strong MRR growth suggests that your business is gaining traction and that you have a scalable model.

How to calculate it:

Key insight: Many startups focus too much on top-line revenue without showing predictable monthly growth. Investors prefer businesses that can demonstrate steady MRR increases.

4. Customer retention rate (CRR)🔗

What it is: The percentage of customers who continue to use your service over a given period.

Why investors care: High retention rates signal strong product-market fit. If customers stick around, it suggests they see real value in your product.

How to calculate it:

Key insight: Investors often say that retention is more important than acquisition. A high retention rate reduces the pressure to constantly find new customers and creates stable revenue streams.

Understanding and optimising these four metrics will help founders tell a more compelling story to investors. Whether you’re pitching to Praetura Ventures or another investor, having data-backed marketing insights can significantly improve your fundraising chances.

Here at Active Profile, we help startups refine their marketing approach, ensuring they focus on the right data points and communicate them effectively. If you need help making your metrics work for you, get in touch hello@activeprofile.co.uk.