May 01, 2018
Building a high-performing technology business requires a deep understanding of sales, marketing and financial metrics that attest to your topline, gross margin and bottom line growth. It’s also important to know how your company stacks up against its peers on such metrics. With that in mind, today, we release the results of our fourth annual Edison Growth Index.
The Growth Index distills and prescribes the characteristics, practices and best-in-class methods that are most relevant to fast-growing, growth-stage technology companies (Fast Growers). This year, we analyzed 40 fintech, healthcare IT and enterprise solution companies across our growth equity investment portfolio with revenue ranging from $5M to more than $50M.
As we have discovered in previous years and validated again this year, the central driving force for Fast Growers is go-to-market alignment executed with excellence and coupled with financial discipline and investment.
This year, we also uncovered eight distinct traits of Fast Growers in their quest for scalable, sustainable growth.
Topline related traits of Fast Growers:
- Invest more in sales in marketing
- Command higher prices
- Close deals faster
- Retain more customers and dollars
Gross margin and bottom line traits of Fast Growers:
- Expand gross margin at higher rates
- Hire rapidly
- Ramp higher revenue per employee
- Absorb heavier losses (in line with capital requirements)
The Growth Index provides important metrics and expert advice to help CEOs and their management teams map and optimize their own growth journeys.
If you’re not already managing your business with these metrics and practices, the Edison Edge team can help you do so.
