The Riskiest Venture-Backed Startups Are 3H’s: High Growth, High Churn and High Burn
SaaStr
MARCH 8, 2024
So recently I caught up with a great founder and a beloved product. They rocketed to $20m ARR, and then … growth radically slowed. To 15% a year. From 100% growth at $10m ARR, to 15% at $20m ARR. That’s rough. But rapidly slowing growth has happened to many the past 24 months. The tough part? The burn and the churn. The burn was at a stunning $2m a month, and the churn had spiked.
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