1/ Today, @a16z Growth launched our Guide to Growth Metrics for B2B companies! @sarahdingwang @aleximm @morrisseyjoe

a16z.com/growth/guide-growth-metrics/?utm_source=twitter&utm_medium=social&utm_campaign=promoted_dg_t...

Why?

2/ As companies scale, metrics become even more critical to understand what's working and what isn’t.

3/ We created this guide to help founders and startups better put their numbers in context as they grow. How we approached the guide…

4/ First, we compiled a proprietary dataset based on 2014-2021 data from companies that have successfully scaled to help founders benchmark the most meaningful indicators for growth, retention, margin, sales efficiency, and business efficiency.

5/ Then, we segmented the dataset by revenue scale, type of software (app v. infra), and GTM motion (top down v. bottom up).

6/ Finally, for each metric, we added why it matters and how to best put the number in context.

7/ If we lack sufficient data for a particular segment, instead of benchmarks, we share guidelines, based on our expertise from meeting and working with hundreds of late-stage companies.

8/ One important note: in a good market, numbers are important, but growth is also easier & can mask underlying issues. In a downturn, understanding your numbers is critical to shift from growing quickly to growing efficiently.

9/ In the current down market, #s overall have gotten worse. Since our dataset comes largely from companies operating in easier market conditions, there is an upward bias. As companies adjust, we expect growth #s to come down and (hopefully) efficiency #s to go up.

10/ This is just the starting point. We’ll keep building out and updating our dataset, so check out the tool and let us know what you think & what you’d like to see! a16z.com/growth/guide-growth-metrics/?utm_source=twitter&utm_medium=social&utm_campaign=promoted_dg_t...