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Scalability
Definition
The ability of a business to grow revenue significantly without a proportional increase in costs or resources. Highly scalable businesses—often those built on software, platforms, or strong intangible assets—can expand margin as they grow, making them attractive to investors.
Related Terms
SaaS (Software as a Service)
SAFE (Simple Agreement for Future Equity)
SAFE Agreement
Scalability Premium
Scenario Analysis
Related FAQ
What does it mean to be transparent about technology debt?
Technology debt—quick hacks, legacy code, unscaled infrastructure—should be acknowledged and itemized. Hiding it until post-acquisition acquisition is fraud.
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