Gross Margin
The percentage of revenue left after the direct costs of delivering a product or service.
Gross margin is revenue minus cost of goods sold (COGS), divided by revenue. High gross margins (typical of software) mean more money to reinvest in growth; low margins (typical of hardware or marketplaces) constrain scaling. Investors use it to judge business-model quality.
Examples
A SaaS firm with 85% gross margin keeps £85 of every £100 in revenue. — A hardware startup operates on 35% gross margin.
How it relates to The Startup Foundry
Margin quality affects the Scalability and Business Opportunity scores in your Investability Report.