Scalability
A business’s ability to grow revenue much faster than its costs.
A scalable business can serve many more customers without a proportional increase in cost — common in software and platforms. Investors prize scalability because it drives outsized returns. Constraints on scalability (manual processes, low margins) limit upside.
Examples
A SaaS product serves 10x users with minimal extra cost. — A services business struggles to scale due to its reliance on headcount.
How it relates to The Startup Foundry
Scalability is one of the four pillars of the Investability Report — the Foundry helps you evidence and improve it.