Business Pitch Dictionary by pitch.dog
Startup traction, burn & capital efficiency · Specialist

Magic Number

Also called: SaaS Magic Number

ELI5

A rough measure of how effectively sales and marketing create recurring revenue.

Used in conversation

“The Magic Number fell after enterprise hiring.”

Definition

A SaaS sales-efficiency heuristic comparing annualised new recurring revenue with prior-period sales and marketing spend.

Here “Magic Number” means: A SaaS sales-efficiency heuristic comparing annualised new recurring revenue with prior-period sales and marketing spend.

Pitch context

You will see “Magic Number” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches startup traction, burn & capital efficiency.

Why it matters: It helps a reader interpret startup traction, burn & capital efficiency without confusing the measure, decision, role or evidence being discussed.

Sources & evidence · 5

Supporting source families. This entry is an editorial synthesis rather than a quotation from one canonical glossary.