6 Predictive Metrics That Truly Measure Revenue Health

I have a bit of a reputation among the founders I back. It’s not because I write the biggest checks or have the most extensive network, though I like to think I hold my own. It’s because the first thing I do after the term sheet is signed isn’t to pop champagne, it’s to ask for a login to their CRM.

You see, my investment thesis is simple but unconventional.

I don’t just bet on founders or markets.

I invest in companies where I can get my hands dirty and build a predictable, scalable revenue engine from the inside. I’ve found that the fastest way to de-risk an investment and accelerate growth is to build a world-class Revenue Operations function from day one. This gives me (and more importantly) and the founding team unparalleled real-time intelligence into the health of the business.

Over the years, I’ve sat in countless board meetings, staring at dashboards plastered with what I call “vanity metrics.” Total pipeline value, lead volume, number of demos booked, marketing qualified leads. MQLs are especially abused. These numbers look impressive on a slide, but they often obscure more than they reveal. They tell you if your engine is busy, but they don’t tell you if it’s healthy. A busy engine can burn a lot of fuel and make a lot of noise without actually getting you anywhere. A healthy engine is efficient, powerful, and predictable.

The difference between the two is the difference between surviving your next fundraise and becoming the master of your own destiny.

The standard dashboard gives you a snapshot in time. It’s rearview-mirror reporting. To truly understand where a company is going, you need to look at predictive indicators: metrics that measure the efficiency, sustainability, and scalability of your growth. These are the numbers I build our RevOps frameworks around. They are the gauges on our forward-looking dashboard.

Today, I want to pull back the curtain and share six of the most critical metrics we implement in every portfolio company. These are foundational to wealth systems, too.

These aren’t just numbers to track. They are diagnostic tools that tell you precisely where to focus your attention, capital, and effort.