How do you know how well your organization is performing? How well can you rate the performance of individual teams? How do you know if your startup is world-class?
Venture capitalists, public market investors and strategic acquirers are all looking for companies that operate with world-class efficiency. The definition of “world-class” varies significantly when considering different types of organizations, but could include having the lowest CAC, the longest customer retention, the most efficient sales process, the highest NPS score, or the best of hundreds of other metrics.
Unfortunately, as a startup founder, it is often difficult to determine how well your company is performing when compared to your peers. Therefore, how can you walk into a VC’s, lender’s or potential acquirer’s office and say without a doubt: “my startup is operating with world-class metrics.”
Without meaningful benchmarks, entrepreneurs can find themselves at a strategic disadvantage as they work towards improving their organization.
This problem is difficult to solve in the public markets and even more challenging in the private markets with new business models, few competitors, and extremely limited publicly available comparable data. This leaves entrepreneurs executing on heuristics and generalized rules of thumb that are not optimized for their stage of business, customer type, or industry.
At FRAMEWORK, we solved this problem the only way we know how – by leveraging data. Our proprietary startup database contains data on over 30,000 individual startups across North America and Western Europe. The database holds over 3 million data points (on average 100 per startup) that help us identify areas of over- and underperformance.
This approach allows FRAMEWORK, to “drill down” and build operationally comparable datasets for startup companies that have never existed before with statistical significance.
These datapoints allow our companies to determine things like “our sales engine is in the 96th percentile for efficiency for Series A companies in B2C fintech” or “our logo retention is in the 37th percentile for Series B enterprise SaaS firms in the cybersecurity space but our net dollar retention is in the 68th percentile.”
These data points are invaluable as they give our CEO’s insight and allow them to make targeted improvements to their business while relying less on gut feel or rules of thumb. Entrepreneurs and VC’s alike are known for having a little bravado, and we all like to believe we’re best in class. FRAMEWORK’s database peels back the cover and allows founders to truly understand where their business is excelling and where it is struggling. The metrics provided by the Data FRAMEWORK and Startup Scorecard help ensure that your energy is focused on doubling-down on your strengths and fixing your weaknesses so you can turn your startup into a truly world-class enterprise.
At FRAMEWORK, we aspire to positively impact the ecosystem, and we want to give back to founders. Through the Startup Scorecard, we’ve opened up our database to founders who can leverage it to get a sneak peak of the value our data driven approach provides. If you’re interested, contact us at firstname.lastname@example.org and get some early feedback on your business.