What’s the best way to measure your company?

Fred Wilson (Co-Founder and Partner at Union Square Ventures)
Profits vs Growth – AVC

Your year over year growth rate plus your pre-tax operating margins need to be at least forty percent. Meaning you can grow at 100% per year and have operating margins of -60%. Or you can have flat growth and have 40% operating margins. Or you can grow at 20% per year and have 20% operating margins. There is no magic to the forty percent target, but I do like establishing some relationship between acceptable levels of profitability (or losses) an… (read more)