Good, better and best for Growth Endurance
To make our work actionable to cloud founders, in true Bessemer fashion, we created a Good, Better, Best framework for Growth Endurance.
For “Good” we hold companies to the 70% growth endurance rule for private cloud. For “Best” we hold companies to the 80% growth endurance rule for public cloud, and “Better” falls in between at 75%. The reason we love this heuristic is because of its connection to our famed chart of companies’ paths from $1M-100M of ARR.
If you assume that a cloud company grows 300% to $1M of ARR a Good company with 70% growth endurance would get to $100M of ARR in 12 years, a Better company with 75% growth endurance would get to $100M of ARR in seven years, and the Best company would get there in six.
Most relevant during:
GTM Fit phase
Scale phase
PMF phase
Most relevant for:
ACVs < $15K
ACVs $15K-$50K
ACVs > $50K
