How are VCs and CFOs evolving their KPI frameworks?

While KPIs like revenue growth, market share, and customer acquisition are critical measures of success, the focus has expanded to include metrics that emphasize operational efficiency and profitability.

During a recent panel discussion at our Aumni Rising event, Eli Wolfson, Senior Associate at Moneta Ventures, shared: “We’ve definitely seen that shift in emphasis to focus on profitability. I don’t think we’ll ever move away from revenue being the core driver. But in the picture of all the other metrics, and in the context of the company, that’s where the focus has really shifted.”

This isn’t a complete transformation of the VC market—growth still matters, and the need for innovation hasn’t diminished. Instead, this shift is more about recalibrating which KPIs take priority, with a growing emphasis on sustainable business practices. As a result, metrics like cash runway and burn multiple, which became a less monitored metric are seeing a renaissance and are now taking center stage.

Adapting KPI frameworks

Experienced venture CFO, James Chan, joined Wolfson at Aumni Rising to discuss how shifting market conditions are reshaping KPI priorities for both investors and operators. He explained, “We’re definitely looking at the burn multiple more now. You know, one of the things that we always look at—and, you know, me being the CFO—[is] always looking at cash runway, just because I want to make sure that I’m ringing the alarm bell for everyone before the alarm bell needs to be rung.”

Burn multiple and cash runway are now part of the core toolkit for both operators and investors aiming to strike a balance between growth and sustainability.

However, this isn’t about abandoning growth. Wolfson noted during the event: “One of the things that we always encourage our portfolio companies to think about as it relates to metrics and their capital allocation is not over-indexing on profitability at all costs. If the growth rate comes down too much, you could see multiple compressions, and the valuations come in really, really quickly too.”

The key is finding balance: maintaining growth momentum while ensuring that operational fundamentals remain strong.

Revisiting data collection and reporting

This shift in focus appears to be influencing how many companies approach data collection, reporting, and interpretation. For CFOs, it often means going beyond traditional financial statements to deliver insights into customer retention, acquisition costs, and operational margins. For VCs, there seems to be a growing interest in robust data standardization to better identify trends across portfolios and support data-driven decision-making.

Aumni’s guide to What KPIs Do Venture Firms Care About Across Stages? explores the evolving priorities for VCs at different stages of growth, offering insights into aligning KPI frameworks.

Go further with Aumni

Refining KPI frameworks isn’t just about tracking the right metrics—it’s about having the tools and insights to ensure those metrics provide meaningful, actionable data. Aumni’s KPI Monitoring helps VCs and CFOs to streamline data tracking, improve portfolio visibility, and focus on the metrics that matter most.

Learn how Aumni can better help you monitor KPIs and support your portfolio management.