I think you're simplifying it too much. It's easy to come to that conclusion in the current market with so much cash floating around, but if the growth rate is

I think you're simplifying it too much. It's easy to come to that conclusion in the current market with so much cash floating around, but if the growth rate is there, then it can make a lot of sense to continue spending for that growth. Brad Feld had an interesting post as kind of a back of the envelope for what your finances should look like (http://feld.com/archives/2015/02/rule-40-healthy-saas-company.html http://feld.com/archives/2015/02/rule-40-healthy-saas-compan...). Of course it's intended for companies 'at scale', or around $1M MRR for a SaaS company. There are plenty of examples of companies that operate like this that you probably wouldn't consider reckless with their spending. HubSpot comes to mind.