Reaching Series B is a genuine milestone. You’ve got customers, you’ve got revenue, and you’ve proven the model works at seed and Series A scale. But at Series B, the conversation with investors changes. It’s no longer enough to show that you’re growing – you need to show that you’re growing efficiently, predictably and with the operational discipline to sustain it.
Investors at this stage are looking for evidence that the business model is repeatable at scale. Your product is established, your acquisition channels are functioning, your sales team are setting and hitting targets reliably, and the focus has shifted to operational excellence, market expansion and long-term financial health.
The metrics that matter at Series B reflect that shift – from traction and retention to efficiency and scalability.
Ready to stress-test your metrics before your next raise? Book a free call with Standard Ledger and we’ll help you get the numbers in shape.
Where Series B Sits in the Journey
It helps to see Series B in context. Each stage of a SaaS company’s growth has a different set of metrics investors are focused on:
| Stage | ARR Range | Focus | Key Metrics |
|---|---|---|---|
| Early Stage | <$1M | Traction | New logos, burn rate/runway, MRR/ARR, churn, CAC |
| Series A | $1M-$3M | Retention | Logo retention, dollar retention, ARR growth, LTV, CAC payback |
| Series B | $3M-$10M | Efficiency | Gross margin, burn multiple, ARR/employee, pipeline metrics |
| Later Stage | >$10M | Business health | Rule of 40, magic number, utilisation, R&D/S&M/G&A as % of revenue, EBITDA |
At Series B, the theme is efficiency. Every metric below ties back to the same question investors are asking: can this business scale without the wheels falling off?
Gross Margin
Gross margin is the percentage of revenue remaining after deducting the cost of goods sold (COGS) – or more specifically for SaaS, the direct costs of delivering the product. It’s the clearest signal of whether your core business is economically sound.
How to calculate: (Revenue – cost of sales) / revenue
Benchmark: 75-85%
At Series B, investors are typically looking for a “fully-loaded” COGS – meaning you’ve correctly allocated devops costs, hosting fees, customer success support and any other costs that directly support your SaaS platform into the cost of sales category. There’s often accounting work needed here, both initially and at each month-end close, to make sure those allocations are accurate.
If your product includes an implementation, training or ongoing service component, separate that revenue and cost out from your pure SaaS margin. You don’t want a services element diluting what should be an 80%+ SaaS margin. And as you grow, start thinking about margin by customer segment – the fully-loaded cost of supporting an enterprise customer is meaningfully higher than a self-serve one, and investors will start to look at this breakdown.
Burn Multiple
The burn multiple shows how much net cash you’re spending to generate each dollar of net new ARR. It’s a measure of capital efficiency – and at Series B, investors want to see it trending down, not up.
How to calculate: Net cash burn / net new ARR
Benchmark: Below 2, ideally below 1
A burn multiple above 2 tells investors you’re spending heavily to generate growth that may not be sustainable. Getting it below 1 means you’re generating more new ARR than you’re burning in cash to acquire it – that’s the signal of a business that can scale without constantly going back to the market for more capital.
ARR Per Employee
ARR per employee is a straightforward productivity metric – it tells investors how efficiently your team is generating revenue. As you hire, you want this number holding steady or increasing, not falling.
How to calculate: ARR / total headcount
Benchmark: $100K-$300K+, increasing over time
If this metric is declining as you scale, it’s a sign you’re adding headcount faster than revenue, which raises questions about operational discipline. At Series B, investors want to see that you’re hiring with intention.
Pipeline Metrics
Pipeline metrics capture the health, size and efficiency of your sales pipeline – the stages a prospect moves through before becoming a customer. They matter at Series B because they give investors visibility into future revenue and the repeatability of your sales function.
How to calculate: Pipeline coverage ratio and stage-by-stage conversion rates
Benchmark: Pipeline coverage of 2-3x your sales target; conversion rates of 20-30%
The deeper story here is about repeatability. Investors want to see that your sales team isn’t just hitting targets occasionally – they’re doing it reliably, with a pipeline that’s consistently large enough to absorb losses and still close to plan. If you’re not already tracking leads by source, conversion by stage and average sales cycle length, Series B is the time to build that discipline.
Getting Your Metrics Series B-Ready
The four metrics above are where investors will focus, but they sit within a broader picture. If your gross margin, burn multiple, ARR per employee and pipeline coverage are all moving in the right direction, you’re telling a compelling story about a business that’s grown up.
If any of them are off, it’s worth understanding why before you start investor conversations – not after.
Standard Ledger works with SaaS founders across Australia to get their metrics, reporting and financial story in order ahead of capital raises. Book a free call and let’s work through where you stand.
