Tren Griffin+ Your Authors @trengriffin I work for Microsoft. Previously I was a partner at Eagle River, a private equity firm established by Craig McCaw. I am on the board of directors of Kymeta. Dec. 13, 2019 1 min read + Your Authors

I have said many times that this is my favorite chart in a S-1. It essentially gives you clues about where the best places are to go hunting as a detective.  It is only a starting point, but it is a very good one. Do you know what business this is?

What's the gross margin?

Are R&D, G&A and sales & marketing in line with comparable businesses?

What are the trends for these metrics?

What do these numbers reveal about underlying unit economics?

Investing isn't easy. You need to be a detective to find the data you need.


Is R&D, G&A and sales & marketing all being 27% in line with comparable businesses?

Are they on the high or the low side?

How are they likely to change as the business scales?

Clue: The Rule of 40 (R40) has nothing to do with 40 fluid ounces of malt liquor!

25iQ: This article talks about 's business being unprofitable: 

"The offering makes it plain that not all loss-making companies are equal."

Is profit or free cash flow more important in this case?

You can follow @trengriffin.


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