The Rule of Forty is an important metric for SaaS companies that combines revenue growth and profitability to assess the health of a business.
Glossary entry
Family office: asset management and growth opportunities for start-ups
Family offices help wealthy families with asset management and offer advisory services. They are also valuable investors for start-ups, as they invest for the long term and provide extensive networks and expertise.
Full-time equivalent (FTE): Standardised key figure for work capacity and personnel planning
The full-time equivalent (FTE) is a key figure that is used to compare the work performance of part-time and full-time employees.
Gross margin: a key measure of profitability
The gross margin is a business ratio that describes the difference between sales and the direct costs of goods or services sold.
Gross profit (gross profit): The difference between sales and production costs
Gross profit is the difference between a company's sales revenue and its direct production costs.
NRR (non-recurring revenue): Measure for non-recurring revenue
Non-recurring revenue (NRR) refers to revenue that is non-recurring and does not occur regularly or repeatedly.
Negative liquidation preference: an investment model for the early phase
The negative liquidation preference is an alternative investment model in start-up financing that represents a special arrangement in the event of liquidation. Here, investors do not receive preferential access to the assets, but the founders are paid out first.
Hurdle shares: the innovative financial instrument for start-ups
Hurdle shares are a special form of...
ARPA (Average Revenue per Account): Important key figure for sales analysis and customer loyalty
ARPA (Average Revenue per Account) measures the average revenue per customer and helps companies to analyse monetisation and customer loyalty.