The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch cover image

20 VC 050: Starting, Building and Selling in SaaS with the King of SaaS, Jason Lemkin, Managing Director @ Storm Ventures

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch

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Is the 40% Rule a Sucker Bet?

I define a market by its current growth rate. I believe that if you could hit a million in revenue growing 15% month over month you can inherently build a company with hundreds of millions in AR. And it's interesting you say about the importance of that growth rate because we often hear about the 40% rule for SaaS businesses and the belief that growth should be and profit should add up to 40%. Do you believe this to be broadly true? The 40% rule or my 15% rule? The 40 percent rule is trying to justify slow growth medium growth high growth businesses and different burn rates. I don't care. I just want a company that once that hits one million or a

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