Welcome to another episode of Funding Simplified, where I simplify the business funding process and share lessons I have learned after being involved in over $500M in debt or equity deals. In today’s episode I wanted to explain MRR, or monthly recurring revenue.   Just like many other industries, the startup industry and investing in the startup industry has its own fair share of acronyms. Monthly recurring revenue, or MRR, is one of those terms that is talked about regularly.   It is important to understand that when referred to, MRR is a statistic that is typically tracked on a 30-day cycle. Additionally, MRR is most commonly used in a few primary industries. The most common of those is the SaaS, or Software as a Service, industry. These are software solutions that customers often pay fees for access to. Those fees can be an annual licensing fee or a monthly subscription fee.    Investors often like startups that have monthly recurring revenue because that means the business has some established, regular income coming in. They will often use MRR to help determine a startup’s valuation and to calculate the speed of repayment on certain types of hybrid funding (such as convertible debt).    Now, one mistake some startups make is doing a one-time special sale of their solution and counting that as MRR. That is not MRR and that revenue should not be counted as on-going revenue.   For more information on funding your business check out this resource.