I can tell you after 23 SaaS investments … it doesn’t really matter how long it takes you to get to the first $1m ARR, per se. I’ve invested in start-ups that got there in 6–9 months. I’ve invested in start-ups that got there in 4 years.
What really matters is how fast you grow at $1m ARR. But a slow start is not the end of the world.
Growth at $1m ARR is highly predictive of the future, at least within a band. The average I’ve invested in has grown at almost 20% MoM at $1m ARR.
But — and this is important — the fastest growth at $1m ARR did not correlate to fastest growth at $10m ARR. 12%-15% MoM growth at $1m is probably “enough” to grow > 100% annually at $10m ARR, in the end.