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← Glossary
Metrics & Unit Economics

Gross margin

Revenue left after the direct cost of delivering your product, as a percentage.

Why it matters

It's why investors love software (80%+) and scrutinise hardware and services — margin decides how much each dollar of growth is worth.

Hear it from people who've done it

Get the real-world version of "Gross margin" drawn from hundreds of conversations with founders and investors.

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Go deeper

Episodes on Growth & Scaling

How Do You Grow a Marketplace When Both Sides Are Slow? Ishan Dan on RegenX

Pick My Brain with Alan Jones · 12 August 2026

How Do You Grow a Marketplace When Both Sides Are Slow? Ishan Dan on RegenX
Deel's COO on the AI Agent Writing Its Own Code

In The Blink Of AI with Georgie Healy · 7 August 2026

Deel's COO on the AI Agent Writing Its Own Code
What Makes a Founder Worth Backing at Pre-Seed? With Ilana Elbaz | GTM at Deel

First Cheque with Cheryl Mack & Maxine Minter · 20 July 2026

What Makes a Founder Worth Backing at Pre-Seed? With Ilana Elbaz | GTM at Deel
All Growth & Scaling episodes →
Related terms

Rule of 40

A SaaS health check: growth rate plus profit margin should clear 40%.

CAC

The fully-loaded cost of acquiring one customer — sales and marketing spend divided by new customers won.

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