This post is by Tomasz Tunguz from Tomasz Tunguz
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Last week, Sean Ellis made an interesting comment in response to this post on public SaaS companies’ growth rates: I’m guilty of giving the same advice to startup founders without providing a transparent rationale. This post is my explanation of why the 15-20% MRR growth number is a reasonably good target for post-Seed/pre-Series A SaaS startups to aim for. Let’s create a hypothetical SaaS startup called SaaSCo with a set of founders who aspire to a fund-raising trajectory like the one in table below.