Today we are excited to introduce the concept of Growth Endurance, a metric we track closely at Bessemer, which we define as the retention of growth that cloud companies experience from one year to the next.

Growth Endurance equals current year growth rate divided by last year’s growth rate.

Let’s look at public examples first. Looking at all data points for BVP Nasdaq Emerging Cloud Index companies over the last decade, we find a consistent trend that cloud companies are able to retain 80% of their growth rate from the prior year.

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