SaaStr · 2014-05-16
· 4402d
Going Big in Startups: Why the Math Matters More Than the Ideology
Jason Lemkin argues that the startup industry's obsession with "going big" is fundamentally driven by mathematics rather than ideology. He explains that founders and VCs have limited at-bats and must pursue order-of-magnitude growth to justify the time and opportunity cost, but cautions that this advice may not apply uniformly to all entrepreneurs at different stages.
Metrics in this report
Founder Career At-Bats
2-3number of startups
median
for successful founders
Return on Investment Threshold
10x multiplier
minimum
order of magnitude growth needed to justify effort
SaaS Company Building Timeline
7-10years
typical
for SaaS startups from founding to maturity
VC Deal Frequency
1-2deals per year
average
per individual VC