Daily Active Users (DAU) is a metric used to track the number of unique individuals who have interacted with a startup's product or service each day.

This measurement provides a more precise understanding of user engagement and shows how frequently users are accessing the product. Compared to "Monthly Active Users" (MAU), DAU is considered a more accurate representation of user engagement as it displays the frequency of users returning to the product.

For instance, a gaming startup may report its DAU as a demonstration of its users' level of engagement and addiction to the product.

An increase in DAU can signify robust user engagement and a growing customer base, which can attract investment and support future growth.

However, a drop in DAU can raise concerns, suggesting the startup is facing difficulties in retaining users or that improvements are needed in the product or service.