Financial Health (25% weight)
Evaluates your cash position, revenue trajectory, and path to sustainability:
- Cash Runway: 18+ months scores highest; below 6 months is critical
- Revenue Growth: Month-over-month MRR growth rate vs. industry benchmark
- Burn Multiple: Net burn divided by net new ARR — below 1.5x is healthy for early stage
- Gross Margin: Target 60%+ for SaaS; 40%+ for marketplace; 20%+ for commerce
Legal Compliance (20% weight)
Tracks your regulatory standing across Indian company law, tax, and IP:
- ROC Filings: AOC-4 and MGT-7 filed on time with zero penalties
- Tax Compliance: GST returns, TDS deposits, income tax advance payments current
- IP Protection: Trademark registered, IP assignments executed for all founders
- DPIIT Recognition: Active recognition for 80-IAC tax exemption eligibility
Product Maturity (20% weight)
Measures how well your product resonates with customers and how fast you ship:
- PMF Score: Sean Ellis test — 40%+ "very disappointed" threshold signals strong PMF
- Retention: D30 retention above 40% for consumer; above 80% for B2B SaaS
- NPS: Net Promoter Score above 50 signals strong product-customer fit
- Roadmap Velocity: Percentage of quarterly roadmap delivered on time
Team Completeness (20% weight)
Assesses whether you have the right people to execute your plan:
- Critical Roles Filled: Does every key function (product, engineering, sales, finance) have a leader?
- Retention Rate: Monthly voluntary turnover below 2% is healthy
- ESOP Setup: Employee equity programme in place to attract and retain top talent
- Founder Alignment: Vesting schedules and SHA clauses protect against co-founder conflict
Operational Efficiency (15% weight)
Evaluates whether your processes and infrastructure can scale:
- Process Documentation: Key SOPs documented in Knowledge Hub
- Vendor Management: All critical vendor contracts active and MSAs in place
- Infrastructure: Cloud architecture reviewed, security posture assessed
- Compliance Automation: Payroll, GST, and filing reminders automated