How much can a great SaaS product earn in the first year?

First off, you have to define when year one starts 🙂

The date of incorporation? The date of first product shipped? The date of first customer ever?

The fastest in my portfolio of ~24 are as follows:

  • $0-$2m in ARR in 12 months: 1. But — took 1 year of development and a tilt to get there.
  • $10k-$2m in ARR in 12 months: 1. Almost $0-$2m in 12 months. Also, took 2 years of development to get to Day 1″. So we can sort of say that 2 got to $2m in ARR in their first year, with an asterisk if we include this second example.
  • $0-$1m in ARR in 12 months: 13. But most took 1+ year to get to first customer.
  • $1m-$12m in ARR in 12 months: 1. Not same question, but the next stage after.

What’s more important really is how fast you grow after $1m in ARR or so. That’s your future.

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Published on June 23, 2018

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