



Understanding COGS & Gross Margin for SaaS Startups
One accounting concept I've seen cause an undue amount of confusion in SaaS (Software as a Service) startups is the Cost of Goods Sold (COGS). I believe it's crucial for founders to fully wrap their heads around COGS due to how it impacts Gross Profit (GP) and Gross Margin (GM) and, thereby, largely describes the scalability of a company's business model.

Understanding Conversion Caps
Since each financing has lasting consequences for companies and their founders, I believe it's crucial for founders to understand what valuation caps actually are, how they differ from equity financing valuations, and the purpose they serve.