Before revenue, show behaviour: waitlist conversion, activation, weekly active users, retention cohorts, engagement depth, pilot commitments, letters of intent, organic growth and referral rate. Present growth rates over time with dates, define each metric, and lead with retention. Totals without context impress no one.
- Rates and cohorts matter more than totals.
- Retention is the strongest pre-revenue signal.
- Paid pilots and letters of intent show willingness to pay.
- Organic growth (zero paid spend) is worth stating explicitly.
- Always define the metric and the date.
Which nine metrics?
| # | Metric | How to show it |
|---|---|---|
| 1 | Waitlist conversion | % of sign-ups who activate |
| 2 | Activation rate | % reaching the core action in week one |
| 3 | Weekly active users | Growth rate week over week |
| 4 | Retention | Cohort chart: week 1, 4, 8 |
| 5 | Engagement depth | Actions per user per week |
| 6 | Pilots | Number, size, paid or unpaid |
| 7 | Letters of intent | Named companies, stated terms |
| 8 | Organic growth | Share of users from unpaid channels |
| 9 | Referral rate | % of users who invite others |
How do you present them honestly?
- Define each metric in a footnote.
- Show trends, not a single flattering week.
- Separate sign-ups from active users.
- Do not present interest, waitlists or investor signals as money raised.
Where does this go?
On the traction slide of your deck (the pre-seed pitch deck), in your monthly investor update and in your pitch video. For why behaviour beats attention, read popular isn't investable.
How do you calculate the most important ones?
| Metric | Formula | Example |
|---|---|---|
| Activation rate | Users who complete the core action in week 1 ÷ new sign-ups | 120 ÷ 300 = 40% |
| Week-4 retention | Users active in week 4 ÷ users in the starting cohort | 45 ÷ 120 = 37.5% |
| WAU growth | (This week's actives − last week's) ÷ last week's | (260 − 240) ÷ 240 = 8.3% |
| Organic share | New users from unpaid channels ÷ all new users | 210 ÷ 300 = 70% |
| Referral rate | Users who invited at least one person ÷ active users | 30 ÷ 260 = 11.5% |
Define the "core action" carefully: it should be the moment a user gets real value, such as sending a first invoice or completing a first analysis, not just logging in.
What do investors discount?
- Cumulative charts that only go up. Show weekly or monthly values.
- Vanity totals such as page views or social followers without a link to usage.
- Unpaid pilots with no decision date or conversion plan.
- Letters of intent without a named person, a price or a timeline.
What if your numbers are small?
Small is normal at pre-seed. What matters is direction and honesty. Ten users who use the product every day and complain when it breaks are more convincing than a thousand sign-ups who never return. Pair the numbers with specific stories: a quote from a user, a workflow they replaced, a renewal conversation. Investors look for evidence that the pull is real and that you understand why.
Frequently asked questions
Can a pre-revenue startup have traction?
Yes. Activation, retention, engagement, pilots and letters of intent all show demand before revenue.
What is the best traction metric before revenue?
Retention: users who keep coming back without being pushed.
Does a waitlist count as traction?
Partly. Conversion from waitlist to active use is more convincing than the size of the list.
Should I show total users or growth rate?
Growth rate and retention, with totals as context.
Let investors find what you're building.
OBridge is an early-access discovery network for founders and investors. Post your build, share your progress, and let verified investors mark you Investable — a private, no-amount signal of interest, not an offer or a commitment.
Join the waitlist →Sources and further reading. a16z, 16 startup metrics; Y Combinator Library.
Educational material, not legal, tax or investment advice. Rules and figures change; confirm with qualified counsel or a tax adviser in your jurisdiction before acting. Last updated October 6, 2026.