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Rules of 126 and 111

November 16th, 2004 · No Comments

Indexed Forever links to a Bain Capital Ventures report on successful software companies. One of the points mentioned is that a new software company should focus on the rule of 126 – $100 million in revenue, 20% EBIT margins in 6 years.

That presumably would apply to companies with a licencing model. Indexed Forever offers a rule of 111 for “software as a service” companies: $100m, 10% EBIT, in 10 years.

Tags: Entrepreneurship

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