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Michael Seibel - How to set your KPI?

Y CombinatorMichael Seibel
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  • Most Y Combinator companies select one primary KPI from revenue, usage, LOIs/contracts, or technical milestones, a choice that facilitates investor comparison against peers but may hinder analysis if the metric is unique.
  • Founders may struggle to strategize growth when focusing solely on broad questions like increasing revenue, whereas identifying three to five secondary metrics that directly drive the primary KPI offers a more effective path for execution.
  • Secondary metrics allow for product-specific creativity, yet their effectiveness depends on aligning with tangible drivers; for example, Airbnb's revenue growth is contingent on achieving break-even alongside specific operational conditions including sufficient inventory levels, correct pricing, rapid host responsiveness, and fast search result speeds.
Michael Seibel - How to set your KPI? — Outlook