17min chapter

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

20VC: The Ultimate Guide to Scaling Marketplaces, Why Rule of 40 and EBITDA Optimisation is BS, How Founders & VCs Should Approach Market Sizing and Outcome Scenario Planning and Why Europe is Failing with Vinted CEO, Thomas Plantenga & Alex Taussig

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

CHAPTER

The Rule of 40: Limited Value in Evaluating Businesses

The speakers discuss the limitations of the 'rule of 40' as an evaluation metric for businesses. They argue that achieving a rule of 40 ratio does not guarantee success, as a company can decline while generating cash. They emphasize the need to focus on fundamentals and the ability of a company to recycle cash for growth.

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