Most entrepreneurs and VC fund investors are laser focused on the company's key metrics. For VC funds key metrics are useful during the due diligence phase in evaluating a company's product performance and operational efficiency, identifying weak spots and estimating the cash needs and growth potential of the business. After a VC fund has made an investment in a company, they will continue monitoring relevant metrics and evaluating the company's progress towards a successful exit.

But for VC funds to gain valuable insight into a company's operations and growth trajectory, or to identify any red flags in the business, the key metrics need to be relevant to the company and to the sector they operate in. For example, new customer churn rates is useful for a product led growth company, and the natural rate of growth or NRG is more useful for a service based company.