Rule of 40 and Burn Multiple | How to Scale Sales & GTM - SaaStr AI University
Growth plus profit should clear 40. Burn multiple shows how much you spend for each new dollar of ARR.
Rule of 40 and Burn Multiple - a free lesson in How to Scale Sales & GTM at SaaStr AI University. Growth plus profit should clear 40. Burn multiple shows how much you spend for each new dollar of ARR. Key takeaways: • Rule of 40: growth rate plus profit margin at or above 40 percent signals a healthy balance. • Burn multiple near or below 1 is where efficient companies live. • Investors increasingly reward efficiency-adjusted growth, not growth at any cost. Part of the free, self-paced How to Scale Sales & GTM course: https://saastr.ai/university/scale-sales-gtm