Hacking Software’s Rule of 40
link Source: www.bain.com
assignment Level : Introductory
chat_bubble_outline Language : English
date_range Published on December 20, 2018
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The Rule of 40—the principle that a software company’s combined growth rate and profit margin should exceed 40%—has gained momentum as a high-level gauge of performance for software businesses in recent years, especially in the realms of venture capital and growth equity. Increasingly, software industry executives are embracing the Rule of 40 as an important metric to help measure the trade-offs of balancing growth and profitability.

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