What SaaS metrics matter?

Evaluating SaaS Companies is an AlbionVC primer that sets out the firm’s framework for assessing software businesses, distilled around five core questions: whether the company delivers genuine customer value, whether its business model is sustainable, whether it has product/market fit in a large enough market, whether it can scale profitably, and what it’s ultimately worth. Drawing on nearly two decades of Series A investing in recurring revenue cloud businesses, the document walks through the key metrics behind each question, from churn and NPS to CAC payback, LTV ratios, and the Rule of 40, and closes with a practical appendix of benchmarks and a customer lifecycle dashboard to help founders and investors track what matters most.