As the SaaS industry and its potential profitability continues to grow, many companies are asking themselves what it will take to receive venture funding from investors.
An article recently published on TechCrunch, written by Rory O’Driscoll, addresses this issue. Driscoll states that investors use a model known as the Mendoza Line to help determine the growth rate of a SaaS company at any given point of its life cycle.
Per-the-article, the Mendoza Line is a term rooted in baseball and is defined as the “batting average below which a hitter is not worth hiring for Major League Baseball.”
Check out the full article to find out how this line applies to SaaS company growth and how you can use it to position your business to receive venture funding.