Table Stakes

• Table stakes are the minimum offer to be considered a viable player, whether you are at the poker table or the boardroom table.
• The term table stakes in business refer to the minimum offering on any aspect of a product before it is considered for purchase by a customer.

ARR vs ACV vs TCV

• Annual Contract Value
• Total Contract Value
• Annual Recurring Revenue, Annual Run Rate
• [TODO] Read about how they are calculated, how they impact business etc

Default Alive, Default Dead

• If a startup is ‘Default Alive’ – it means, the business can achieve profitability with its current resources before running out of money.

Rule of 40%

• The Rule of 40 is a principle that states a software company’s combined revenue growth rate and profit margin should equal or exceed 40%. SaaS companies above 40% are generating profit at a rate that’s sustainable, whereas companies below 40% may face cash flow or liquidity issues.