How do I know if my SaaS is growing properly? I look at one number — the Rule of 40. A simple formula (growth + profitability ≥ 40%) helps me determine whether the business is healthy.

In this video, I explain how it works and why investors care so much about it. I also share a real example from our work with Datawisp — how a product redesign improved their user experience and helped secure a $3.6M seed round.

Watch the video to see if your SaaS strikes the right balance between growth and profit.

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• Master the Double Diamond Design Process – https://www.youtube.com/watch?v=dD0WxbdS6j0

• Rule of 40 for SaaS: Tips and Tricks for Healthy SaaS Development – https://www.eleken.co/blog-posts/rule-of-40-for-saas-what-its-about-and-why-its-important-for-healthy-software-products

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00:00 – Intro
00:07 – What is the Rule of 40
00:17 – How to Calculate the Rule of 40
01:33 – Why Product and Design Matter
01:42 – Datawisp Case study
02:43 – The True Meaning of the Rule of 40