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:
From OpenView 2022 SaaS Benchmarks:
