3:54

Michael Seibel - How to set your KPI?

From Y Combinator · Published Jul 21, 2021 · Watch on YouTube

TL;DR

The video explains that a startup’s primary Key Performance Indicator (KPI) should be one of four standard categories: revenue, usage (DAU/WAU/MAU), contracts signed (for enterprise), or a technical milestone (for science/moonshot companies).

Key insights

  • The top KPI must be one of four standard types (revenue, usage, contract signed, technical milestone) so investors can benchmark the company against similar companies.
  • Secondary metrics (3–5) are what founders should brainstorm features on and try to optimize every week; they form the base of a metric “pyramid.”
  • For Airbnb as an early startup, the primary KPI was revenue (with a goal of breakeven), and the secondary metrics were: amount of inventory, average price of inventory, host responsiveness, and search

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