Why investors won’t back you without the right numbers
If you’re a FinTech founder raising capital, you’ve probably already discovered this: investors love vision, but they only invest in numbers.
And not just any numbers. In FinTech – where margins are thin, regulation is heavy, and competition is fierce – investors focus on a small set of core metrics. These numbers cut through the hype and tell them if your model actually works.
Show up to a pitch without them, and you’ll look unprepared. Show up with them, explained clearly and confidently, and you’ll stand out from 90% of founders they meet.
So what are the four investor metrics every FinTech founder must know?
1. CAC (Customer Acquisition Cost)
CAC tells investors how much you spend to acquire each new customer. In FinTech, this figure is often higher than in other sectors, because winning trust in financial services takes more than clever marketing.
What to include in CAC:
- Paid ads and referral schemes.
- KYC/AML checks and onboarding costs.
- Customer support during sign-up.
Why investors care:
- High CAC means your growth may not be sustainable.
- Investors want to see CAC trending down over time.
- They’ll compare your CAC to LTV to judge long-term viability.
How to impress:
Be transparent. Don’t understate CAC to look good – investors will spot it. Show how CAC improves as you optimise acquisition and retention.
2. LTV (Lifetime Value)
LTV is the total revenue you expect from a customer over their lifetime with your product. In FinTech, it’s not just about how much they spend – it’s about how long they stay, and what else you can sell them.
What drives LTV in FinTech:
- Churn rate – how quickly customers drop off.
- Cross-sell potential – lending, savings, insurance or premium features.
- Transaction volume – how much customers actually use your platform.
- Risk-adjusted returns – defaults, chargebacks or fraud reduce real value.
Why investors care:
- A strong LTV proves customers find real value in your product.
- LTV shows how much you can afford to spend on acquisition.
How to impress:
Model LTV conservatively. Show investors you understand churn and risk. Highlight how LTV grows with cross-sell and retention strategies.
Not sure if your LTV stacks up? 💡
Book a free 30-minute consultation with a CFO to get a second opinion on your investor metrics.
3. CAC:LTV Ratio
This is the investor’s shortcut to seeing if your unit economics make sense. The CAC:LTV ratio compares what you spend to acquire a customer with what they’re worth over time.
The benchmarks investors look for:
- 3:1 ratio or better – for every £1 spent on CAC, you generate £3 in LTV.
- Ratios below 2:1 suggest your model is too costly to scale.
- Ratios above 5:1 may suggest you’re under-investing in growth.
Why investors care:
This ratio proves whether your model is scalable. It also shows how efficiently you’re spending investor money.
How to impress:
Be upfront about your ratio today, but also show the trajectory. “We’re at 2:1 now, but our plan to reduce CAC and increase retention gets us to 3:1 in 12 months.”
4. Burn Multiple
This is the newer favourite metric in venture capital. Burn multiple measures how efficiently you turn cash burn into revenue growth.
Formula:
Net burn ÷ net new revenue.
What it shows:
- A burn multiple of <1 is excellent (you’re adding more revenue than you burn).
- 1-2 is good and acceptable for early FinTechs.
- >3 is a red flag – you’re burning too much for the growth achieved.
Why investors care:
It shows how resilient you are in tougher funding markets. With “growth at all costs” gone, efficiency matters more than ever.
How to impress:
Present your burn multiple with context. Show how compliance and regulatory spend impacts early numbers, then outline the path to improving efficiency as those fixed costs scale.
A founder’s checklist before your next investor meeting
- Do we know our true CAC, including compliance and onboarding?
- Is our LTV model realistic, factoring in churn and risk?
- Can we confidently state our CAC:LTV ratio and explain the trend?
- Have we calculated our burn multiple, and do we know how to improve it?
If you can’t answer yes to all four, you’re not ready to face FinTech investors.
Investors buy clarity, not complexity
FinTech is one of the most scrutinised sectors in venture capital. Investors know regulation is expensive, margins are thin, and competition is tough. They’re not looking for perfection – they’re looking for clarity.
Show up with a clear grasp of your CAC, LTV, CAC:LTV ratio, and burn multiple, and you’ll instantly set yourself apart as a founder who knows the numbers.
At Standard Ledger UK, we work with FinTech startups to:
- Build financial models that calculate and track these metrics.
- Create investor decks that present them with confidence.
- Plan funding strategies that turn regulatory costs into a competitive advantage.
Need help nailing these four investor metrics before your next pitch? Book a free 30-minute consultation to stress-test your CAC, LTV, burn multiple and more – with a CFO who knows what FinTech investors expect.