Startup Health

Track your startup health score across product, finance, team, and legal

Startup Health Score — Know Exactly Where You Stand

The Startup Health Score is a quantitative model that evaluates your company across five critical dimensions — financial health, legal compliance, product maturity, team completeness, and operational efficiency. Your score refreshes dynamically as you update data across Corpfy modules, and benchmarks you against similar-stage startups in the ecosystem.

Investors, accelerators, and lenders all use informal versions of this assessment when evaluating startups. Corpfy formalises it so you can identify and close gaps before they surface in due diligence.

  • Five-dimension composite score out of 100 with per-dimension breakdown
  • Dynamic refresh — score updates automatically as you update data
  • Benchmarked against similar-stage startups in the Corpfy ecosystem
  • Actionable improvement recommendations for each dimension
  • Investor-ready health report exportable for board meetings and fundraising

The Five Health Dimensions

Dimension Weight What Gets Measured Healthy Range Investor Relevance
Financial Health
Core
25% Cash runway, burn rate, MRR/ARR growth rate, gross margin, burn multiple (net burn ÷ net new ARR), LTV:CAC ratio 18+ months runway; burn multiple below 1.5x; LTV:CAC above 3:1; gross margin 60%+ (SaaS) Highest weight for Seed and Series A investors; first metric checked in any investor meeting
Legal Compliance
Essential
20% ROC filing currency (AOC-4, MGT-7), GST return compliance (GSTR-1, GSTR-3B), TDS deposit timing, trademark registration, IP assignments, DPIIT recognition status Zero overdue filings; all IP protected; DPIIT recognition active; SHA and founder vesting agreements executed Deal-breaker in due diligence — a single compliance gap can delay or kill a term sheet
Product Maturity
Growth Signal
20% PMF score (Sean Ellis test — % "very disappointed"), D30 retention cohorts, NPS, feature delivery velocity (% roadmap shipped on time), user engagement metrics PMF score 40%+; D30 retention 40%+ (consumer) or 80%+ (B2B SaaS); NPS above 50 Critical for Series A and beyond — investors need evidence of product-market fit before investing growth capital
Team Completeness
Execution Risk
20% Key roles filled vs. open (CTO, CFO, Head of Sales), monthly voluntary turnover, ESOP programme status, founder vesting schedules, diversity metrics All C-suite and VP roles defined; turnover below 2%/month; ESOP pool 10–15% authorised; founder vesting active Investors back teams, not ideas — missing a CTO or Head of Sales is a significant red flag at seed stage
Operational Efficiency
Scale Readiness
15% SOP documentation coverage, vendor contract currency, cloud infrastructure review, payroll and compliance automation, knowledge management maturity All critical processes documented; vendor MSAs active; infrastructure reviewed against DPDP Act; payroll automated Matters most at Series B when investors evaluate whether the company can absorb 10x growth without breaking

Score Benchmarks by Funding Stage

Pre-Seed (Idea to MVP) — Target Score: 45–60

At pre-seed, investors primarily evaluate team and idea. Financial and product dimensions will naturally score lower because you haven't yet built or sold. Focus on:

  • Incorporating correctly (Private Limited preferred over LLP for VC funding) and obtaining DPIIT recognition
  • Executing founder vesting agreements and IP assignments before raising any capital
  • Documenting customer discovery interviews — evidence of problem validation substitutes for revenue traction

Seed Stage (MVP to ₹1Cr ARR) — Target Score: 60–75

At seed, investors want to see early PMF signals and financial discipline. Your score should reflect:

  • 18+ months of runway post-seed round
  • 10–30 paying customers with documented NPS above 40
  • All ROC filings and GST returns current — zero compliance gaps
  • Core team (product, engineering, 1 sales leader) in place
  • Trademark registered and IP assignments executed

Series A (₹1Cr–₹20Cr ARR) — Target Score: 75–85

Series A investors conduct deep due diligence. A score below 70 signals material gaps they will raise in term sheet negotiations. Your score should reflect:

  • Strong PMF evidence: 40%+ Sean Ellis score, D30 retention above benchmark for your sector
  • Efficient growth: CAC payback under 18 months, LTV:CAC above 3:1
  • Complete leadership team: CTO, CFO/VP Finance, Head of Sales, Head of Marketing
  • SOC 2 readiness assessment completed if selling to enterprise customers

What a Score Above 85 Signals to Investors

  • Financial health is strong — 24+ months runway, healthy unit economics, positive gross margin trajectory
  • Legal compliance is spotless — zero penalty risk, IP fully protected, cap table clean
  • Product has proven market fit — users would miss the product, retention is strong, NPS is positive
  • Team is complete — no single-point-of-failure dependency on a founder, ESOP in place to retain talent
  • Operations are scalable — processes documented, infrastructure reviewed, compliance automated

Frequently Asked Questions

How often does my health score update? +

Your score refreshes dynamically whenever you update data in any Corpfy module. If you connect accounting integrations, financial metrics update automatically on a daily basis. We recommend a dedicated weekly review — 15 minutes every Sunday — to manually update metrics that aren't auto-synced, such as NPS scores, roadmap progress, and hiring status.

Can I share my health report with investors? +

Yes. You can export a one-page Health Report from the Startup Health dashboard. It includes your composite score, per-dimension scores, benchmark comparisons against similar-stage companies, and the top 3 recommended improvement actions. This is ideal for investor updates, board meetings, and due diligence data rooms. You can also grant investors a read-only view of your live dashboard.

My compliance score is low but I haven't received any penalties — does it matter? +

Yes — significantly. Overdue ROC filings and GST returns accumulate penalties retroactively. More critically, investors and acquirers conduct compliance audits during due diligence. A single overdue annual return (AOC-4) delays ROC approval for new filings and can block share allotments to incoming investors. Corpfy's compliance alerts flag issues before they become penalties, but clearing existing arrears should be an immediate priority if your score is low.

How is the benchmark calculated — who am I being compared to? +

Your benchmark cohort is matched on three dimensions: funding stage (pre-seed, seed, Series A), sector (SaaS, D2C, fintech, etc.), and revenue range (pre-revenue, ₹0–₹1Cr, ₹1–₹10Cr, ₹10Cr+). Cohort data is aggregated from all Corpfy users in that profile and refreshed monthly. Scores are percentile-ranked — a score of 75 means you rank above 75% of startups in your cohort.

Which dimension should I improve first? +

Prioritise based on your next milestone. If fundraising in the next 6 months: focus on Financial Health (extend runway) and Legal Compliance (zero due-diligence blockers) first — these are the dimensions investors check hardest. If building for product-market fit: focus on Product Maturity (PMF score, retention). If scaling post-Series A: focus on Team Completeness and Operational Efficiency. The dashboard recommendation engine surfaces dimension-specific action items ranked by investor impact.

Key Takeaways for Startup Health Score

A health score below 70 will surface as investor concerns in due diligence — fix gaps before you fundraise:

Series A investors in India conduct structured due diligence across legal, financial, product, and team dimensions. Any score below 70 in a dimension typically maps to a specific finding that investors will flag — whether it's a missing ROC filing, an absent Head of Sales, or a PMF score below 40%. Corpfy's health score gives you the investor's view of your startup before you sit across the table from them, so you can close the gaps in advance rather than negotiating away equity to address investor concerns.

Legal compliance gaps are the most common silent deal-killers in Indian startup fundraising:

In our experience across the Corpfy ecosystem, legal compliance issues are responsible for delaying or blocking more Series A term sheets than any other factor. Common blockers include: overdue ROC filings (prevents share allotment to new investors), missing IP assignments from founders (creates IP ownership uncertainty), and incomplete cap table documentation (complicates shareholder agreements). All of these are 100% preventable with a calendar-driven compliance system — which is what the Legal Compliance dimension of your health score tracks.

PMF score below 40% means you should invest in product, not sales:

Sean Ellis's benchmark — 40% of users saying they'd be "very disappointed" without your product — is the most reliable predictor of sustainable growth. Below this threshold, investing in sales and marketing accelerates churn rather than revenue. The Startup Health Score's Product Maturity dimension incorporates PMF score, D30 retention, and NPS to give you a composite signal. If your product score is below 60, the recommendation is to pause top-of-funnel growth and focus on the 20% of users who do find the product indispensable — understand why they love it and make it more of that.

Team completeness is about removing single points of failure, not headcount:

Investors worry about team risk primarily through two lenses: founder dependency (what happens if a co-founder leaves?) and capability gaps (who will own enterprise sales if you don't have a VP Sales?). The team completeness dimension of your health score tracks both. Founder vesting schedules and SHA clauses address dependency risk. Role coverage mapping identifies the capabilities you need to hire for in the next 6–12 months. A team completeness score below 60 at Series A typically signals that investors will require specific key hires as a condition of closing.

Inside Corpfy Company Health

Corpfy Company Health gives founders a single composite score (0–100) built from five dimensions: financial runway, MRR growth, team attrition risk, NPS, and pipeline coverage. Each dimension is rated Green / Amber / Red so you can see at a glance which area needs attention this week — without opening five separate dashboards.

What you get in the dashboard

FeatureWhat it doesFounder benefit
Composite Health ScoreSingle 0–100 score built from Finance, Growth, HR, Customer, and Pipeline dimensions — updated in real timeOne number for board meetings and investor updates that captures business health holistically
Dimension Alert SystemEach dimension rated Green (healthy), Amber (watch), Red (critical) with specific threshold triggersKnow exactly which part of the business needs intervention this week — not just that "things feel off"
Weekly Health TrendTracks composite score over time — flags improving vs declining trajectoryTrend matters more than absolute score — a declining score 3 weeks running is an earlier signal than a single red flag
Stage BenchmarksCompares your health scores against India SaaS norms at your current funding stageContext for your score — a 65 at Seed with 18 months runway is healthy; a 65 at Series A burning fast is a problem
Board Summary ExportGenerates a one-page company health snapshot for board meetings and investor updatesBoard prep time cut significantly — the health snapshot IS the opening slide
Corpfy

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