In the heyday of VC-backed growth, startups had to lock in just two key metrics to secure funding: TAM and revenue growth; the larger the better. But the downturn of early 2022 brought another priority to the forefront: sustainable growth.
It’s tricky because it’s not a single metric — it’s more of a movement.
In many ways, sustainable growth looks different across industries and products, but for the average SaaS company, it’s underpinned by one core concept: product scalability. In SaaS, scalability is measured through several metrics, including ARR (annual recurring revenue) per employee, R40 (Rule of 40), and more. We’ll get into that soon.
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