What is the rule of 40?

The rule of 40 is a way for companies to measure their performance and success. It is a simple calculation that looks at a company‚Äôs total revenue growth and profit margin. The rule of 40 states that for a company to be successful, the sum of its revenue growth and its profit margin should be equal to or greater than 40. The rule of 40 was first proposed by venture capitalist Fred Wilson in a blog post in 2011. In the post, Wilson suggested that a company should strive to achieve a total of 40 or more in its revenue […]