On 3rd January I shared how ‘1% of Salesforce market share can potentially create a Unicorn’ concept floated by Tomasz Tunguz. Here is another one. This is by Neeraj Agrawal, General Partner at Battery Ventures. He outlines a 7 phase of GTM success strategy for SAAS companies – and backs it up with data from companies like Marketo, NetSuite, Omniture, Zendesk, Salesforce, ServiceNow and WorkDay.
The target is to get to $100mn+ revenue and thus a Billion dollar Valuation. Phase 1: is getting a great product market fit (and this is transitional – will share more about this later); Phase 2: Get to $2mn ARR – from 30-60 customers ( assuming 30-80K / client); Phase 3: Triple to $6mn ARR; Phase 4: Triple again to $18mn; Phase 5, 6 and 7 – Double double double to 36, 72 and 144. Phase 3-7 should happen in 5 years. Possible ? Here is proof ( see figure below ). Difficult – you bet. Mostly around building the appropriate sales organisation for each phase.
Link to Neeraj’s article and his interview explaining this to Alexander Theuma in ‘The SaaS Revolution Show’ and the podcast link given below