Garber: Startups under $5M ARR must double revenue annually to raise VC
Scott Garber · 9 - Empowering Founders to Win with Early Light Ventures Managing Partner Scott Garber · Dec 5, 2024 · at 22:52
Scott Garber, Managing Partner at Early Light Ventures, provides rule-of-thumb revenue growth benchmarks required for early-stage startups seeking venture capital.
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“The general benchmark, I tell everyone below three to five in ARR is you generally need to be doubling every year at a least. I think if you're over five in ARR, it depends on your burn and everything else, but aim to double at least 50, 60, 70% year over year. If you get below that, it can be hard to raise because a VC is going to look at that and be like, how are you going to get over 10 or 20 or 30 in ARR to get me the right exit, even smaller VCs.”
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