How Startup KPIs can help investors find out future unicorns

28 July, 2022

On July 7, Startup Central Eurasia held its Startup KPIs Day. To select the ten most promising startups, the platform used a new mechanism –  the Startup KPIs success calculator. Irakli Kashibadze, CEO of the platform, explains what problems this tool solves and how it reflects investors' views on priority metrics of startup development. 

"Science intensity and growth rate are the main factors for investors"

In the USA, a large number of startups are set up under universities. Angel investors trust student business projects because they are technologically sound: students get academic knowledge and are already proficient in a particular field. Hence, the startup's science-intensive and innovative nature – the startup can find a clear industry improvement solution, which determines the possibility of early financing.

If there is no technological innovation in the startup, the main metric will be the number of users and growth dynamics.  Some funds look at the revenue per month metric: if the MRR rises markedly, the chance of getting investment is greater. 

For example, the startup Stripe, an American electronic payment processing company, has convinced investors of its value. Or DoorDash, a food delivery platform. At first, the founders delivered the food themselves with their own vehicles, but then they got their first results and got funding for development. So start-ups need to start working in the market, test the product and only then seek investment. 

"Startup KPIs Tool translates startup success data into an investor-friendly language"

Venture capitalists and business angels say there is "a lot of noise" in the Central Eurasia market – unstructured information about startup development metrics. It is hard to know what their prospects are. And then funds hire venture scouts and spend a lot of resources on this. With our Startup KPIs Tool we translate the data about the success of a startup into a language that investors can understand, and thus help find a future unicorn.

The Startup KPIs Tool is an institutional product. Our KPIs are higher than those of any fund scout, as we work with accelerators and incubators across the region and know the specifics of the Central Asian market.  

"Startup KPIs tool is a self-analysis mechanism for a startup"

One of the major complaints of start-ups is lack of access to finance and lack of venture capital. Our platform will be a bridge to connect the funders with venture capital. 

To please an investor, a startup needs to learn to show its success in numbers. Thanks to our tool, which is essentially a self-analysis mechanism, a startup will spend less time calculating its metrics. Moreover, if a funder enters data every month, and the calculator shows the dynamics of growth, we will target this data to investors. 

There are already 8 international funds cooperating with our platform, which are interested in local startups. Among them are Republic, Republic Asia, Investors in Cartooli SPVs, Fund Investors in Cartooli's Network, Frontier Market Fund Investors, Sturgeon Capital.  And their number will grow. 

Apart from looking for startups with existing metrics, we will support the very start-ups. To do this, the platform organizes training sessions and establishes agreements with investors who are willing to act as mentors: to share industry knowledge and help startups.