Sat.Apr 11, 2020

article thumbnail

Why Margin Matters Now in Startupland

Tomasz Tunguz

Over the last decade, growth has been the winning card for startups to play. The faster the business grew, the higher its valuation. Margins didn’t matter much. Neither gross margin, nor net income margin weighed heavily on a company’s valuation unless they deviated grossly from norms. Today, runway ranks as the first consideration in evaluating a company’s strategy.