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Venture Capital
~75s
Startup Financials & Unit Economics
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Unit Economics
Startup Metrics
For a SaaS startup, why do VCs care so much about gross margin?
A
Because higher gross margin increases scalable contribution and improves LTV math
B
Because it determines the company's interest coverage ratio
C
Because it guarantees the startup will never need to raise again
D
Because it eliminates the need for sales and marketing spend
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