Glossary entry

The Rule of Forty is an important metric for SaaS companies that combines revenue growth and profitability to assess the health of a business.

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.

The full-time equivalent (FTE) is a key figure that is used to compare the work performance of part-time and full-time employees.

The gross margin is a business ratio that describes the difference between sales and the direct costs of goods or services sold.

Gross profit is the difference between a company's sales revenue and its direct production costs.

Non-recurring revenue (NRR) refers to revenue that is non-recurring and does not occur regularly or repeatedly.

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 are a special form of...

ARPA (Average Revenue per Account) measures the average revenue per customer and helps companies to analyse monetisation and customer loyalty.