The 'Rule of 40' is popular among investors and analysts because it provides a simple, easy-to-understand metric for evaluating the financial health of software companies. As with any metric, there are pros and cons. It combines two important metrics, revenue growth and profit margin into a single number that can be used to quickly assess… Continue reading The Rule of 40
Month: February 2023
Venture Funding
When raising a Series A round of financing, founders need to focus on the metrics that demonstrate the potential of their company to investors. Post prototype, pre-product market fit. Here are five metrics that founders should track and be prepared to discuss (albeit business model dependent): 1/ Monthly Recurring Revenue (MRR): This is the amount… Continue reading Venture Funding
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