What is Startup Health Score?
A startup benchmark evaluates your company across runway, revenue growth, burn multiple, and team productivity metrics.
The Formula
Score = (ฮฃ Category Scores รท Number of Categories) ร 100
Worked Example
A seed-stage startup: 14 months runway, 18% MoM growth, 2.5x burn multiple, $85K revenue per employee.
- Runway: 14/18 target = 78/100
- Growth: 18/20 target = 90/100
- Burn multiple: 2.0/2.5 = 80/100 (lower is better)
- Rev/employee: 85/100 target = 85/100
- Overall = (78 + 90 + 80 + 85) รท 400 ร 100 = 83%
๐ The startup scores 83%, strong growth but runway needs extending before the next fundraise.
Why This Matters
Fundraising positioning
VCs benchmark startups against stage-specific medians. Scoring in the top quartile commands 2-3x higher valuations.
Burn management
Burn multiple reveals whether your spend is efficient. Below 2x means each dollar burned generates good growth.
Strategic planning
Benchmarks reveal whether to focus on growth, efficiency, or fundraising based on current position.
Common Mistakes
โ Comparing across stages
Pre-seed, seed, and Series A have different benchmarks. A 10% growth rate is poor for seed but fine for Series B.
โ Ignoring burn multiple
High growth funded by extreme burn is not impressive. Efficient growth (low burn multiple) is what investors want.
โ Not extending runway early
Start fundraising with 9+ months runway. Starting at 3 months puts you in a weak negotiating position.
Industry Benchmarks
| Category | Good | Average | Poor |
|---|---|---|---|
| MoM Revenue Growth (Seed) | 20%+ | 10-20% | Below 8% |
| Burn Multiple | Below 1.5x | 1.5-3x | Above 4x |
| Runway | 18+ months | 12-18 months | Below 9 months |
Source: First Round Capital State of Startups Report 2025
Benchmark data sourced from First Round Capital State of Startups Report 2025.