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Lead Velocity Rate (LVR) is a crucial metric for startups, especially when seeking investment

Lead Velocity Rate (LVR) is a crucial metric for startups, especially when seeking investment, for several reasons:

  1. ๐๐ซ๐ž๐๐ข๐œ๐ญ๐ฌ ๐…๐ฎ๐ญ๐ฎ๐ซ๐ž ๐‘๐ž๐ฏ๐ž๐ง๐ฎ๐ž: LVR calculates the real-time growth of qualified leads month over month. Itโ€™s often considered the best predictor of future revenue and can be unaffected by seasonality or team quality.
  2. ๐€๐ฌ๐ฌ๐ž๐ฌ๐ฌ๐ž๐ฌ ๐‹๐จ๐ง๐ -๐“๐ž๐ซ๐ฆ ๐†๐ซ๐จ๐ฐ๐ญ๐ก ๐๐จ๐ญ๐ž๐ง๐ญ๐ข๐š๐ฅ: LVR assesses a startupโ€™s potential for long-term growth by measuring the month-to-month percentage change in the number of qualified leads. This allows startups to forecast sales from one month to the next.
  3. ๐‘๐ž๐š๐ฅ-๐“๐ข๐ฆ๐ž, ๐๐จ๐ญ ๐‹๐š๐ ๐ ๐ข๐ง๐ : Unlike sales numbers, which are lagging indicators defining what happened in the past, LVR is real-time and clearly predicts future revenues and growth. This makes it a more strategically important metric than revenue growth.
  4. ๐ˆ๐๐ž๐ง๐ญ๐ข๐Ÿ๐ข๐ž๐ฌ ๐ˆ๐ฌ๐ฌ๐ฎ๐ž๐ฌ ๐„๐š๐ซ๐ฅ๐ฒ: If sales rates are out of sync with your LVR, it indicates a problem with either the sales team or the product that is preventing sales from being as robust as expected.

Investors are interested in these aspects as they provide insights into the startupโ€™s future performance and growth potential. Therefore, maintaining a healthy LVR can be a strong indicator for investors that the startup has a promising future.

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