2min snip

This Week in Startups cover image

Mastering Early-Stage Board Meetings | Startup Finance Basics w/ Kruze's Scott Orn | E1865

This Week in Startups

NOTE

The Importance of High Gross Margin for Investors and VCs

High gross margin allows companies to have more funds for marketing, research & development, and operations, making them more attractive to investors. High gross margin companies tend to have higher enterprise value multiples and are more likely to trade at higher valuations when they go public. VCs are more interested in high gross margin businesses like software, marketplace, FinTech, and consumer businesses. Conversely, VCs may not be interested in capital-intensive or traditional businesses with low gross margins. However, traditional manufacturing businesses can attract VCs by adding a high-margin subscription revenue stream to their offerings.

00:00

Get the Snipd
podcast app

Unlock the knowledge in podcasts with the podcast player of the future.
App store bannerPlay store banner

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode

Save any
moment

Hear something you like? Tap your headphones to save it with AI-generated key takeaways

Share
& Export

Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode