A north star metric is the primary measure of the value a product or company delivers. It separates the product being built from its monetization and gives investors or founders a focused signal for tracking progress toward a potential breakthrough. section 12.3.3
Choose the metric according to the company’s domain and growth model:
- A social media company might track subscriber growth, such as reaching one million subscribers. section 12.3.3
- A product-selling company might track customer acquisition cost, with a target below a defined dollar threshold. section 12.3.3
- Monitor the chosen metric over time, while recognizing that each domain can require a different indicator. section 12.3.3
The metric is useful for screening start-ups alongside factors such as network effects, business model, burn rate, capital intensity, and strategic partnerships. It is a focused indicator, not a complete investment assessment. section 12.4 section 12.3.3
