I was catching up on Brad Feld’s blog this morning and saw that he had posted about the “40% rule” for SAAS companies. I was at the same board meeting as Brad and came away similarly impressed by the simplicity of the rule and the logic behind it. Here’s the 40% rule and it is aimed at SAAS companies: Your annual revenue growth rate + your operating margin should equal 40% So, if you are growing 100% year over year, you can lose money at a rate of 60% of your revenues… Continue Reading