We are getting ready for our next funding round, and the landscape seems to have changed significantly. Investors aren't just looking at top-line ARR anymore; they seem obsessed with efficiency. I’m trying to figure out which saas metrics I should lead with in our pitch deck. Obviously, we track Churn and CAC, but I’ve been told that "Burn Multiple" and "Net Revenue Retention" (NRR) are the real deal-breakers right now. Is a 110% NRR still considered "best-in-class," or has the bar moved higher? Also, for those of you in the growth stage, how are you calculating your LTV in a market where subscription fatigue is a real thing? I want to make sure my dashboard isn't just "vanity metrics" but shows real, sustainable unit economics that a VC would respect.
Which saas metrics are the most critical to show investors in 2026?
- Thread starter Dorian
- Start date
Geralt_of_Rivia
New member
By 2026, investors have mostly stopped backing "growth at all costs" and instead focus on capital efficiency and sustainability. Even though a solid Rule of 40 score (which nowadays is heavily weighted towards profitability) and a Net Revenue Retention (NRR) of 110%+ are still the minimum requirements, the standout metric this year is ARR per Employee. As AI-driven automation is shaving off the number of employees, investors want to see high revenue per head (preferably $300k+) as evidence of a modern, scalable stack. Besides that, they are checking Gross Margin more carefully than before to make sure that AI inference costs are not quietly eating your profit margin, while CAC Payback period stays under 12 months.
zentorix08
New member
The growth at any cost years are squarely in the rearview mirror. In 2026, Rule of 40 is absolute minimum, however, the best VCs are seeking a Rule of 50+ in case you want a premium price. Your 110% NRR is considered healthy in the mid-market but to enter the enterprise-level (best-in-class) the yardstick has certainly shifted to 125 percent or more. Unless you are demonstrating that current customers are adding seats or installing AI equipment, it will be considered that your product is not very sticky by the investors.
CeceliaRut
New member
Frankly speaking, this is when VCs would like you to build the company on a laptop with a dream. When your Burn Multiple is more than 1.5x in this 2026 market, they stare at you as though you were setting the bags of cash on fire in the lobby. I look forward to the time they request our Oxygen per Revenue measure. All you need to do is demonstrate to them a slide on how you are growing 40% with spending practically no money in marketing and they might grant you a decent term sheet.
NIJDianna3
New member
Whatever you do, give focus on your Burn Multiple and CAC Payback Period. The new excellent standard of 1.0x to 1.5x of a Burn Multiple applies to a growth stage company in the year 2026. When you are pushing 2.0x you will be burnt on your efficiency. Don't be also led by LTV; it is too simple to be manipulated. First comes Gross Retention Rate (GRR). Without being able to retain the customers you already have, then LTV calculation is a mere fiction.
RickieShee
New member
110% NRR is fine, really! Thing is, do not allow the noise of the best-in-class to put you down. The majority of startups would be pleased to get a steady 110%. The trick about pitch deck is to show the trend line. One of the stories of a maturing product is to be 100% last year and is 110% this year. In the case of LTV, a 3-year model with capped prizes should be used as an alternative to lifetime. It demonstrates that you are realistic on subscription fatigue and market churn.
When your NRR is at a paltry 110% and you are currently attempting to raise a Series B, you will have a very difficult time. The bar did not move but it jumped. You are to look at Net New ARR Efficiency (Magic Number). When that is not greater than 0.8 or 1.0, then your sales motion is defunct. Investors are weary of being told about the potential LTV, and they want to see the Cash Flow Margin begin to increase in a positive direction, or at least a very clean, evidence-based trail to it over the next 18 months.
Do you include the costs of your AI inference in your Gross Margin? That's the hidden metric for 2026. When you are a SaaS+AI company, investors will just tear the layers of your COGS to determine whether such margins will be maintained as you grow. When your gross margin is dropping below 75% due to your LLM API spend, then your LTV will be appearing a lot less appealing no matter how low your churn is.
LTV is in a sense a vanity measure in 2026. I would be able to tell an investor that we are LTV of 10x our CAC by assuming that our customers will remain with us over a period of ten years, but no one believes it anymore. It is a fact that subscription fatigue does exist. To impress a VC, you should present your ARR per Employee. Best in the class in growth stage firm is currently in the trend to 200ks and above. It is the final testament that you have a lean machine as opposed to a bloated headcount.
1. Burn Multiple: Target < 1.5
2. NRR: Target > 120%
3. Rule of 40: Aim for 50%+
4. CAC Payback: Under 12 months
5. Gross Margin: 80%+
1. Burn Multiple: Target < 1.5
2. NRR: Target > 120%
3. Rule of 40: Aim for 50%+
4. CAC Payback: Under 12 months
5. Gross Margin: 80%+
I like the fact that the critical metrics are revised every two years. Two years back it was triple triple, double, double. Now it is, do not spend a penny, and make sure that all the customers will purchase three more products. We take more time tweaking the dashboard to the Board than actually writing the software. All you need to do is wait until 2027 when the most important metric is likely to be the number of AI agents utilizing your API versus real people.