As a SaaS startup, how fast should your MoM growth be from $0 to $1M ARR?

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.

A lot more here: Growth and Burn Rates at $1m ARR for 20+ Fast Growing SaaS Companies | SaaStr

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Published on August 2, 2018

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