Growth Vs Profitability? How do investors decide?

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Growth Vs Profitability? How do investors decide?

Rule of 40 says that a tech company can make losses, and burn cash in order to drive growth — as long as the company is scaling the business and growth is more than 40%.

Also, this rule is mostly applied to software-based startups (SaaS), and gives us an idea on how investors think before funding a loss-making startup.

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