"Going from $1M to $3M to $9M is not interesting"
According to the mega-funds (in this case the always-quotable Hemant Taneja of General Catalyst), what used to be great growth in startupland is no longer interesting.
Old rule of thumb: the category creators across software startups would grow Triple, Triple, Double, Double, Double from the moment they hit $1M in ARR.
Meaning: $1M -> $3M -> $9M -> $18M -> $36M -> $72M in 5 years or so. Better if it's faster, of course, but that was the implicit bar.
Post AI boom, the numbers have gotten bigger, faster.
Today the "best" companies rocket from $1M to $15-$20M to $100M in 3 years. Sometimes they even skip the middle part and go direct to $100M+ in a matter of months.
These pacesetters garner the headlines, scoop the high valuations, and dominate the conversation.
But to say anything less than that is "not interesting" is silly.
𝗢𝘁𝗵𝗲𝗿 𝗣𝗲𝗿𝘀𝗽𝗲𝗰𝘁𝗶𝘃𝗲𝘀
Something like 95%+ of venture funds are not mega-funds. There are different thresholds for different players in this multi-faceted game.
There are lots and lots of industries where SaaS growth assumptions make little sense, especially at the early stages.
Profitability and growth both exist along spectrums. Impressive, but not 99th percentile, growth + real margins is a fundable proposition for many VCs.
We're in a bubble 😁
Candidly I still think it's pretty useful for founders to understand what the narrative-setting expectations are today (h/t to Harry Stebbings for the great content).
Play the game you want to play - but don't fool yourself by thinking it's the only game in town.
#startups #founders
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