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Rule of X - beyond the Rule of 40

with the Metrics Brothers

Rule of 40 has been the standard metric B2B SaaS investors and operators have used to measure balanced growth...will the Rule of 40 be surpassed by the new Rule of X recently created by Bessemer Ventures? Join Dave "CAC" Kellogg and Ray "Growth" Rike as they discuss the details about the Rule of X including:

  • Foundational calculation formula for the Rule of X

  • How to find the "Growth Weighted" M in the formula

  • What is a good "Rule of X" score

The Rule of 40 has been around for over a decade - but it was missing one key variable....which is more important growth or profitability? Beyond that, if one variable is more important what are the respective weights of Growth and Profit?

CAC and Growth have a little fun while diving deep into the details behind the Rule of X and the Rule of 40.

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