Leading Indicator

A metric that predicts future results, like sign-ups or qualified leads, as opposed to a lagging indicator that reports what already happened.

Why it matters

Leading indicators let you steer before results land, giving time to react. Building your dashboard around them, not just revenue, is the difference between driving forward and looking in the rear-view mirror.

For example

New trial signups are a leading indicator: a dip this week warns of a revenue dip next quarter, while there is still time to react.

Worth your time

16 Startup Metrics a16z · article Leading Indicator is defined here among the core startup metrics investors actually track, with how to read it honestly. Open a16z.com →

Related terms

Go deeper

See how founders actually handle this on Money, pricing and metrics, part of the Starting Up hub.

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