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The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch cover image

20Growth: The Golden Rule to $100M in ARR, Why CAC to LTV is BS Early On, Why Your First Growth Hire Should Be a Former Founder & How Ramp Does 200 Growth Experiments Per Quarter with Guillaume Cabane

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch

NOTE

3x3x2x2x2 Law of Start-Up Growth

Companies often find initial success by targeting a specific audience and maximizing their message and product fit with that audience. As the early adopters are convinced, friction increases with other potential customers, leading to the need to explore new audiences in different industries, segments, and geographic locations. The 3x3x2x2x2 law of start-up growth states that in order to be in the top decile of startups in terms of performance, valuation, and funding, a company must achieve a 3x growth in the first year, followed by 3x growth in the second year, and then 2x growth for the subsequent three years, ultimately reaching 100 million plus in revenue in five years.

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