Scaleup Math
The economics of efficient growth of SaaS companies
Companies and products are eventually judged on economics; the ability to turn ideas and cash into growth. Understanding the economics of product introduction can accelerate growth, reduce capital requirements and increase the chances of a firm succeeding globally. It can also lead to the creation of a successful scaleup. The following diagram shows a summary of the economics of creating an efficiently scaling SaaS company.
Market Sizing
If you’re starting or scaling a new business, the most significant determinant of its growth rate and how big it will become is the market size you’re entering.
Product Market Fit
When you’re trying to scale up your business, one of the steps along the way is to achieve strong product market fit.
Capital Efficiency
And if you can grow rapidly using capital efficiently, you’ll earn a superlative return for shareholders.