×

JOIN in 3 Steps

1 RSVP and Join The Founders Meeting
2 Apply
3 Start The Journey with us!
+1(310) 574-2495
Mo-Fr 9-5pm Pacific Time
  • LANGUAGES
    • English English
    • Italiano Italiano
  • SUPPORT

M Accelerator

M Accelerator

Explore, Engage, Evolve

T +1 (310) 574-2495
Email: info@maccelerator.la

M ACCELERATOR
824 S. Los Angeles St #400 Los Angeles CA 90014

  • WHAT WE DO
    • BUSINESS STUDIO
      • Scale Up in the USAonline
      • Startup Program (post MVP)online
      • Founders Studioonline
    • Altri Programmi
      • Strategic Persuasion Workshoponline
      • Reg D Fundraising
      • Business Innovationonline
      • web3 nexusonline
      • Hackathononline
  • COMMUNITY
    • Our Approach
    • STARTUPS
    • COACH & MENTOR
    • PARTNERS
    • STORIE
    • TEAM
  • BLOG
  • EVENTI
JOIN US
  • Home
  • blog
  • investors
  • The Growth Rates Investors Expect: A Deep Dive

The Growth Rates Investors Expect: A Deep Dive

Alessandro Marianantoni
giovedì, 29 Febbraio 2024 / Published in investors

The Growth Rates Investors Expect: A Deep Dive

In the dynamic world of startups, understanding startup growth expectations is crucial for attracting investment. Renowned venture capital firms like a16z, Lightspeed, Accel, Menlo, Greylock, and Founders Fund have set clear benchmarks for growth rates, which are critical for startups aiming for success.

Get the Exact Growth Rates Investors Expect in 2025

✓ Stage-by-stage growth expectations (Pre-seed to Series C+)
✓ 2025 benchmark data from 1,500+ companies
✓ Burn multiple thresholds that get investor attention
✓ Industry-specific growth rates (AI, Cybersecurity, Fintech)
✓ Red flags that kill funding rounds

Download the 2025 Growth Rate Benchmark Guide

Subscribe to download the Guide

    We won't send you spam. Unsubscribe at any time.
    Built with Kit

    Table of Contents

    • Get the Exact Growth Rates Investors Expect in 2025
    • The Early Stage: Racing to $1M ARR
    • Post $1M ARR: Sustaining and Scaling
    • Pre-IPO: Managing Expectations and Growth
    • Reality Check: Do These Numbers Align with Expectations?

    The Early Stage: Racing to $1M ARR

    The initial phase for any startup is pivotal. Here, the primary goal is achieving a $1M Annual Recurring Revenue (ARR). This target is not just a number; it represents a significant milestone indicating product-market fit and the potential for scalability. Investors typically expect startups to hit this mark within a year of launch.

    During this phase, a Month-over-Month (MoM) growth rate of 15%-25% is considered the gold standard. This aggressive growth rate demonstrates a startup’s ability to quickly capture market share and validate its business model.

    Post $1M ARR: Sustaining and Scaling

    Once a startup crosses the $1M ARR threshold, the growth expectations shift. The focus moves from high-speed growth to sustainable scaling. The MoM growth rate is expected to be between 5% and 10%. While this may seem like a deceleration, it is a strategic shift towards strengthening the business foundation for long-term success.

    Year-over-Year (YoY) growth expectations also change post $1M ARR. A 2X to 3X YoY growth is considered healthy and indicative of a startup’s ability to scale efficiently while managing the complexities of a growing business.

    Pre-IPO: Managing Expectations and Growth

    As startups approach the IPO stage, growth rates naturally begin to slow down. This slowdown is not a sign of stagnation but a reflection of the business reaching maturity and operating at a larger scale. During this stage, a 3% – 5% MoM growth or a 1.5X – 5X YoY growth is typical.

    The Growth Rates Investors Expect: A Deep Dive - The Growth Rates Investors Expect A Deep Dive

    Reality Check: Do These Numbers Align with Expectations?

    The benchmarks set by leading venture capitalists are ambitious yet achievable. They serve as a guideline for startups to measure their growth trajectory. However, it’s important to remember that these figures are not one-size-fits-all. The nature of the industry, market conditions, and unique challenges of each startup play a significant role in determining realistic growth rates.

    In conclusion, while top investors’ growth rate expectations can serve as a strategic blueprint, startups must also weigh their unique circumstances and market dynamics. Meeting these ambitious targets is admirable, yet balancing rapid expansion with sustainable practices is crucial for long-term success.

    If you’d like to read more insights like this and discover additional opportunities tailored for business founders, sign up for our free newsletter to stay informed and connected.

    Recent Posts

    • How To Build Personas Based On Pain Points

      How To Build Personas Based On Pain Points

      Creating customer personas that focus on pain p...
    • Brand Identity for Social Media Platforms

      Brand Identity for Social Media Platforms

      Explore how to create a consistent brand identi...
    • Building a Testing Culture: Scaling Experimentation in Your Startup - Building a Testing Culture Scaling Experimentation in Your Startup

      Building a Testing Culture: Scaling Experimentation in Your Startup

      Learn how to build a testing culture in your ...
    • Ultimate Guide to Fintech Startup Storytelling

      Ultimate Guide to Fintech Startup Storytelling

      Explore how effective storytelling can elevate ...
    • Ultimate Guide to CLV Prediction with ML

      Ultimate Guide to CLV Prediction with ML

      Learn how machine learning enhances Customer Li...

    Categories

    • Alumni Spotlight
    • Entrepreneurship
    • Entrepreneurship Program
    • Events
    • Freelance
    • Los Angeles
    • Networking
    • news
    • News
    • The School of Entrepreneurship
    • Tips sul Bando Torno Subito 2021
    • torno subito
    • Venture Capital

    connect with us

    Subscribe to the Founders’ Newsletter

      Built with Kit

      Online Programs

      Early-Stage Startup

      Global Entrepreneurship

      Business Innovation

      Strategic Persuasion

      Growth-Stage Startup

       Stripe Climate member

      Network & Investment

      Regulation D

      Events

      Startups

      Blog

      Partners

      Team

      Coaches and Mentors

      Our Approach

      The Studio Framework

      • DISCLAIMER
      • PRIVACY POLICY
      • LEGAL
      • GET SOCIAL

      © 2025 MEDIARS LLC. All rights reserved.

      TOP

      Receive our Insights

      For founders who value learning, self-improvement, and leadership, we deliver insights to help you thrive in every stage of your journey.
      ​

      What you’ll get:

      • Proven strategies for pitching, sales, and scaling your business.
      • Trends and opportunities from the startup ecosystem.
      • Inspiring content to build your leadership skills and grow your business.

      Believe in your potential. Let’s grow together

        We won't send you spam. Unsubscribe at any time.
        Built with Kit
        Add new entry logo

        This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Read More

        In case of sale of your personal information, you may opt out by using the link Do Not Sell My Personal Information

        Accept Decline Cookie Settings
        Cookies are small text files that can be used by websites to make a user's experience more efficient. The law states that we can store cookies on your device if they are strictly necessary for the operation of this site. For all other types of cookies we need your permission. This site uses different types of cookies. Some cookies are placed by third party services that appear on our pages.
        • Always Active
          Necessary
          Necessary cookies help make a website usable by enabling basic functions like page navigation and access to secure areas of the website. The website cannot function properly without these cookies.

        • Marketing
          Marketing cookies are used to track visitors across websites. The intention is to display ads that are relevant and engaging for the individual user and thereby more valuable for publishers and third party advertisers.

        • Analytics
          Analytics cookies help website owners to understand how visitors interact with websites by collecting and reporting information anonymously.

        • Preferences
          Preference cookies enable a website to remember information that changes the way the website behaves or looks, like your preferred language or the region that you are in.

        • Unclassified
          Unclassified cookies are cookies that we are in the process of classifying, together with the providers of individual cookies.

        Powered by WP Cookie consent
        Cookie Settings

        Do you really wish to opt-out?

        Powered by WP Cookie consent