#metrics

23 results

Glossary

Beginner finance

Burn Rate

Burn rate is the monthly rate at which a startup spends cash. It determines how much runway remains before the company must raise more money or turn profitable.

Beginner metrics

Churn Rate

Churn rate is the percentage of customers or revenue a business loses over a given period. The most important retention metric for any subscription business.

Beginner finance

Gross Margin

Revenue minus Cost of Goods Sold, divided by revenue. The foundational profitability metric that drives SaaS valuation multiples and unit economics.

Intermediate metrics

Rule of 40

Growth rate % plus EBITDA margin % must equal or exceed 40. The single metric VCs use to balance SaaS growth against profitability efficiency.

Beginner finance

Runway

Runway is how many months a startup can operate before running out of cash. It defines the time to reach the next milestone or close the next funding round.

Guides

Concepts

Articles