Magic Number Startup

Noun · Startup & VC

Definitions

  1. A reference to the SaaS magic number, a quick efficiency metric comparing recurring-revenue growth to prior sales and marketing spend. Investors use the magic number to gauge whether growth spending is producing enough revenue momentum.

    In plain English: A startup efficiency concept based on whether sales and marketing spend is producing enough recurring revenue growth.

    Example: "The startup's magic number improved once payback got tighter and the sales ramp matured."

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