{
  "version": "1.3.0",
  "releasedAt": "2026-05-20",
  "kpi": {
    "rogueId": "sales.new_business",
    "slug": "new_business",
    "domain": "sales",
    "defaultLabel": "New Business ARR",
    "description": "Annualized recurring revenue booked from net-new logos (first-time customers) during the period. This is the \"hunt\" line of the ARR waterfall — the output of the new-customer acquisition motion, distinct from expansion (existing-customer upsell) and from churn / downgrades. Common pitfall: counting renewals or expansion deals as new business inflates the new-logo conversion engine and hides a stalled acquisition motion. The KpiVarianceTable widget shows period forecast vs actual; downstream views compare it to S&M spend to derive new-business CAC and CAC payback.",
    "fieldType": "currency",
    "unit": null,
    "maturity": "general",
    "suggestedForStages": [
      "preSeed",
      "seed",
      "seriesA",
      "seriesB",
      "seriesC",
      "public"
    ],
    "defaultOwningFunctions": [
      "Sales"
    ],
    "stageRelevance": {
      "preSeed": "core",
      "seed": "core",
      "seriesA": "core",
      "seriesB": "core",
      "seriesC": "core",
      "public": "core"
    },
    "definitionSource": {
      "tier": "editorial",
      "sourceName": "imboard Editorial",
      "sourceUrl": null,
      "sectionRef": null,
      "publicationDate": "2026-04-01",
      "attributionNotice": null
    },
    "formula": "New Business ARR = Sum of ARR contracts signed during the period by customers who had zero prior ARR with the company. Excludes expansion, renewals, and reactivations. Aligns with the SMSB definition of new-logo ARR and pairs 1:1 with sales.new_customers_added for ASP analysis.",
    "whyItMatters": "Direct read on the health of the new-customer acquisition engine — separates \"are we winning new logos\" from \"are existing customers expanding.\" Inputs the New CAC Ratio and CAC Payback calculations the board uses to judge sales efficiency.",
    "interpretationGuidance": "New Business ARR running below plan for two consecutive quarters is the classic early-stage growth-stall signal — usually upstream pipeline coverage or win-rate problems. New Business as a share of total Net New ARR should be 60–80% pre-Series B and trends down to 40–60% post-Series B as expansion picks up (industry folk-wisdom, not citation-grade — verify against KBCM/Sapphire 2024 segmentation tables for the company stage band).",
    "relatedKpiIds": [
      "sales.arr",
      "sales.new_customers_added",
      "sales.avg_contract_value",
      "sales.expansion",
      "sales.cac",
      "sales.new_cac_ratio",
      "sales.cac_payback_period"
    ],
    "calculationPolicy": {
      "inclusionRules": [
        "Annualized contract value of net-new logos signed during the period (customers with zero prior ARR with the company).",
        "Multi-year contracts: use annualized value (TCV / term in years), not first-year billing.",
        "Same recurring-revenue definition as ARR: live / delivered subscription value only."
      ],
      "exclusionRules": [
        "Expansion deals from existing customers — those belong in `sales.expansion`.",
        "Renewals of existing customers — those are retention, not new business.",
        "Reactivated customers who previously churned: classify per company policy, but be consistent and disclose. Some firms count reactivations as new business, others as recovery.",
        "Bookings (signed but not yet live) — those are CARR. New Business is the live-ARR subset."
      ],
      "requiredInputs": [
        "CRM customer table with first-active-contract-date per account.",
        "Contract value annualized per account.",
        "Period boundaries (start/end dates)."
      ],
      "dataSourcePriority": [
        "CRM with explicit \"first-time customer\" flag or stable customer-since field.",
        "Manual classification from CFO/Rev-Ops when CRM customer-since isn't reliable."
      ],
      "edgeCases": [
        "Account splits / parent-child relationships: count by the same logo-unit used elsewhere in the waterfall (typically parent organization).",
        "Customers who signed late in the period but went live in the next: defer to the period when ARR turns live (matches ARR semantics) — unless the company explicitly uses booking-date.",
        "Pilots that convert to paid: count from the first paid contract, not the pilot start."
      ],
      "validationChecks": [
        "New Business ARR + Expansion − Churned − Downgrades = Net New ARR. The waterfall must reconcile to the ARR delta within 1%.",
        "New Business should pair 1:1 with `sales.new_customers_added` — count and dollars track together; a large divergence indicates a logo-counting or classification error."
      ],
      "commonMiscomputations": [
        "Counting renewals as new business — most common error; inflates the new-logo motion narrative and breaks every downstream CAC ratio.",
        "Counting expansion deals from existing customers — same effect; also doubles up against the expansion line.",
        "Using bookings instead of live ARR — overstates by the implementation backlog (often 10-25% of new bookings).",
        "Logo-unit drift: parent-org-counted one quarter, sub-account-counted the next — produces phantom new-logo growth.",
        "Late-period signing counted in the wrong period when the live-vs-signing convention isn't pinned."
      ]
    },
    "metricBasis": {
      "timeBasis": "period_flow",
      "moneyBasis": "contracted_arr",
      "dateBasis": "go_live",
      "production": "primary"
    }
  }
}