{
  "version": "1.3.0",
  "releasedAt": "2026-05-20",
  "kpi": {
    "rogueId": "customers.top_customer_concentration",
    "slug": "top_customer_concentration",
    "domain": "customers",
    "defaultLabel": "Top Customer Concentration",
    "description": "Share of total ARR contributed by the top N customers — typically top 5 or top 10. Measures revenue concentration risk: a high concentration means losing one big customer would materially dent ARR. The board reads this alongside `arr_at_risk` and the customer list to gauge how much of the company's future is tied to a handful of accounts. Common pitfall: hiding parent-account aggregation — if three \"customers\" are subsidiaries of the same parent, true concentration is higher than the count-by-logo view shows; settle parent-rollup rules and document them in `customer_definition_note`.",
    "fieldType": "percentage",
    "unit": "%",
    "maturity": "general",
    "suggestedForStages": [
      "seriesA",
      "seriesB",
      "seriesC",
      "public"
    ],
    "defaultOwningFunctions": [
      "Finance",
      "Sales"
    ],
    "stageRelevance": {
      "seriesA": "core",
      "seriesB": "core",
      "seriesC": "core",
      "public": "recommended"
    },
    "definitionSource": {
      "tier": "editorial",
      "sourceName": "imboard Editorial",
      "sourceUrl": null,
      "sectionRef": null,
      "publicationDate": "2026-04-01",
      "attributionNotice": null
    },
    "formula": "top_customer_concentration = Σ(ARR of top N customers) ÷ total ARR. N is typically 5 or 10 — fix it for the company and hold it constant. Parent-account roll-up rules must be explicit and stable across periods.",
    "whyItMatters": "Quantifies \"single-account risk.\" For early-stage companies, high concentration is expected and not necessarily a problem; for growth-stage companies, it constrains valuation multiples and is a frequent due-diligence flag in fundraising and M&A.",
    "interpretationGuidance": "No single citation-grade benchmark exists; commonly-cited industry folk-wisdom (not citation-grade) holds that top-10 customer concentration above 50% is a yellow flag and any single customer above 20% of ARR is a serious risk that fundraising and acquirer diligence will flag. Trend it across quarters — falling concentration is healthy customer-base diversification; rising concentration deserves a board note even if the absolute number is acceptable today.",
    "relatedKpiIds": [
      "customers.arr_at_risk",
      "customers.percent_arr_at_risk",
      "customers.total_customers",
      "customers.churn_risks",
      "sales.arr"
    ],
    "metricBasis": {
      "timeBasis": "point_in_time",
      "production": "computed"
    }
  }
}