Rule of 40
A performance benchmark for SaaS companies where the sum of revenue growth rate and free cash flow margin equals or exceeds 40%.
Source: Euroscape 2024: AI Eating Software (Accel) · p.18
Reports that mention Rule of 40
- Market Pulse September 2026 EditionFinch Capital
- Market Pulse July 2026 EditionFinch Capital
- Market Pulse June 2026Finch Capital
Have a question about Rule of 40? Ask the AI, answers cite the source.