In most markets, rapid growth is the north star for attracting venture funding and premium valuations. This post covers three mathematical rules of thumb to gauge your growth.
- Triple, Triple, Double, Double, Double: Grow to ~$100M in revenue in just five to six years by following this annual compounding pattern.
- The Mendoza Line for VC Funding: Grow at least ~85% of your previous year’s growth rate to stay on VC radars.
- Monthly Compounding to 100% growth: Growing 6% month-over-month is the same as growing 100% year-over-year.
Click here to continue reading about revenue trends to get your startup funded.
CJ Gustafson is a startup CFO, angel investor and lover of metrics. He’s led finance and strategy teams at hyper growth startups scaling from <$10M to +$100M in ARR.
CJ writes a weekly business newsletter called Mostly Metrics, which is read by thousands of startups founders, venture capitalists, and financial analysts. Discover new ways to monetize your business model, or learn how to calculate net retention and CAC payback period for your company, you can subscribe for free.