Understanding Cost of Goods Sold and Gross Margins in Software Companies

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This chapter explores the concept of cost of goods sold in software companies, with a focus on AI companies. It discusses the importance of gross margins and highlights the challenges faced by heavily operational businesses. It also mentions the trend of scaling negative margin businesses and the impact of higher interest rates.

In this episode of Startup School, YC Group Partner Tom Blomfield discusses one of the most important elements of running any startup: metrics! Tom shares what key metrics to track and how to use them to make the best decisions for your company. Apply to Y Combinator: https://yc.link/SUS-apply Work at a startup: https://yc.link/SUS-jobs