T2D3
When it comes to revenue growth the T2D3 framework is probably the most popular among SaaS VCs.
T2D3 stands for ‘triple, triple, double, double, double” applied to your ‘end of the year’ ARR.
The rationale behind this framework is to show what it takes to grow your revenue from $1M — $2M to around $100M ARR in 6–7 years (which is what fast growing SaaS companies achieve).
Obviously the vast majority of SaaS startups will never reach this level of growth and that’s completely fine. But know that if you talk to “traditional” SaaS VCs, they’ll probably ask themselves: “Does this company have the potential to T2D3?”.
Most relevant during:
GTM Fit phase
Scale phase
PMF phase
Most relevant for:
ACVs < $15K
ACVs $15K-$50K
ACVs > $50K