pirate metrics

Definition

The AARRR framework measuring Acquisition, Activation, Retention, Referral, and Revenue—the key metrics for growth-stage startups. Named because AARRR sounds like a pirate, which is somehow still funny to founders.

Example Usage

Our growth team obsessively tracked pirate metrics, discovering that our activation rate was killing overall conversion.

Origin

Coined by Dave McClure of 500 Startups around 2007

Fun Fact

Despite the playful name, optimizing pirate metrics is serious business—improving just one can dramatically impact company valuation.

Source: Startup analytics and growth metrics terminology

Related Terms

Intermediate

ownership target

The percentage of a company a VC aims to own to make an investment worthwhile relative to their fund size. It's why large funds often can't invest in your seed round—they need bigger slices.

🚀 Startup / VC

Beginner

GP

General Partner, the VC fund managers who make investment decisions and carry legal liability for the fund's operations. They're the ones whose names are on the door and whose reputations are on the line.

🚀 Startup / VC

Advanced

carve-out

Reserved portion of an acquisition's proceeds specifically allocated to employees or specific shareholders, ensuring they benefit even if the waterfall would otherwise drown them. Exit sharing mandated by negotiation or generosity.

🚀 Startup / VC

Beginner

MVP

Minimum Viable Product: the absolute least you can build before showing it to humans, which somehow always ends up being the final product. It's the software development equivalent of serving someone a raw potato and calling it a restaurant soft launch.

💻 Tech / IT🚀 Startup / VC

Intermediate

vesting acceleration

Speeding up the vesting schedule of stock options, typically triggered by acquisition or termination. It's the consolation prize when your startup gets acquired and you're suddenly unemployed.

🚀 Startup / VC

Advanced

dragon

A startup that returns an entire venture fund's value through a single investment, making every other deal in the portfolio irrelevant. Rarer than unicorns and more impactful than a hundred modest successes combined.

🚀 Startup / VC

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