What KPIs to include in your animation pitch to secure funding?

So, you’ve got an incredible startup idea that you know will knock the socks off investors. But before you can start dreaming of storyboards and character arcs, you need one thing: funding.

And to get funding, you need to speak the language of the money — KPIs or Key Performance Indicators. Why? These are the metrics that will show investors that your project isn’t just a creative endeavor but a smart business move. 

What exactly should you showcase? Let’s find out! 

Customer Acquisition Cost 

One of the first things investors want to know is how much it will cost to acquire a customer. This metric tells them how efficient your marketing and sales efforts are. What should you do then?

In your animated pitch, clearly explain your CAC and how you plan to reduce it over time. Whether it’s through word-of-mouth, strategic partnerships, or cost-effective advertising, show them you’ve got a plan.

Why it matters: Lowering your CAC over time means more profit per customer, which is music to investors’ ears. It shows that your startup can grow sustainably and profitably.

Customer Lifetime Value (CLTV)

If you’re acquiring customers, how much are they worth to your business over the long haul? There is no investor in the whole world who would not want to know about this. Or at least hear your data regarding this matter.

The CLTV measures the total revenue you can expect from a customer throughout their relationship with your startup. Pair this with your CAC to show investors that the cost of acquiring customers is worth it based on the long-term value they bring.

Why it matters: A higher CLTV compared to CAC indicates a healthy return on investment (ROI) for every customer you acquire. It reassures investors that your startup is not just a one-hit-wonder but a business with staying power.

Burn Rate and Runway

How fast are you burning through cash, and how long can you keep operating before you need more funding? Your burn rate and runway are critical KPIs that investors will scrutinize. Don’t even doubt that.

What can you do? First, work to research it. Then, use your animation to show a clear timeline of your financial projections, highlighting how long your current funding will last and when you’ll break even. 

Why it matters: Investors need to know that their money won’t just disappear into thin air. Demonstrating a manageable burn rate and a clear path to profitability reassures them that you’ve got a handle on your finances.

User Engagement and Retention

It’s not enough to just get customers — you need to keep them coming back. This is a common truth we all know these days. You can expect that investors want to see these.  Showcase metrics like user engagement and retention in your animated pitch.

Whether it’s through daily active users (DAU), monthly active users (MAU), or churn rates, illustrate how your product or service keeps customers hooked. Investors need to know that in order to make a decision; or at least to back it up. 

Why it matters: High engagement and retention rates are indicators of a strong product-market fit. Investors are more likely to back a startup that can not only attract users but also retain them, ensuring long-term growth, therefore, worthy of considering investments. 

Conversion Rate

If your startup relies on converting leads into customers, your conversion rate is a KPI you can’t afford to ignore. Use your animated pitch to break down your sales funnel and show how effectively you’re turning interest into action. Highlight any strategies you’re implementing to improve conversion rates, such as A/B testing or user feedback loops. Investors are expecting to see that. 

Why it matters: A high conversion rate means you’re effectively turning potential customers into paying customers. It’s a sign that your marketing and sales strategies are working, which is exactly what investors want to see.

Revenue Growth Rate

Your revenue growth rate tells investors how quickly your startup is scaling. Use animation to visually represent your revenue growth over time, showing both past performance (if applicable) and future projections. Emphasize any key milestones, like reaching a certain number of users or hitting specific revenue targets.

Why it matters: A strong revenue growth rate signals that your startup is on the right trajectory. It demonstrates momentum, which is crucial for attracting investors who are looking for high-growth opportunities.

Conclusion

When you’re pitching your startup to investors, animation can be a powerful tool to make your presentation memorable. But behind the eye-catching visuals, you need to back up your pitch with solid KPIs that show your startup’s potential for growth and profitability. 

If you need help in packing all these metrics into a great animated pitch, just contact us. We will do the rest for you!