Category
Series B Key Challenges
Series B Team’s org
Market Practices
Revenue Growth Rate + Burn Rate = 40%
Critical
The 40% rule implies that early-stage companies with either low or negative profitability could still be reasonably priced at a high valuation multiple if their growth rate can offset their burn rate.
Market Practices
From Revops Squared 2022 SaaS Benchmark:
![image](https://www.notion.so/image/https%3A%2F%2Fs3-us-west-2.amazonaws.com%2Fsecure.notion-static.com%2F39f08e84-af69-473c-bf66-69838a63adf8%2FUntitled.png?id=7e53b318-3d84-4798-840d-197bdcbc7efb&table=block)
From OpenView 2022 SaaS Benchmarks:
![image](https://www.notion.so/image/https%3A%2F%2Fs3-us-west-2.amazonaws.com%2Fsecure.notion-static.com%2F243cb712-f02c-4e9f-b6ad-07aa1a4408dd%2FUntitled.png?id=40b7e25e-d99e-41ae-bcba-8714e585ce70&table=block)