The 3 3 2 2 2 rule of SAAS growth

The rule of thumb for growth rate expectations at a successful SaaS company being managed for aggressive growth is 3, 3, 2, 2, 2: starting from a material baseline (e.g. over $1 million in annual recurring revenue (ARR)), the business needs to triple annual revenues for two consecutive years and then double them for three consecutive years. A funded SaaS business which consistently grows by 20% per year early in its life is likely a failure in the eyes of its investors.

Great piece of advice on different sales models for SAAS companies by Patrick of Stripe.

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