VCs demand 50x annual growth, but Cal took 4.5 years to reach $10M ARR
FinanceYF5 · x · 2026-09-08
- Some VCs now say companies must grow 50x per year or they won't invest; the author argues this standard will make them miss great companies.
- Only about 7 AI companies have gone from zero to $1B in revenue; "SaaS apocalypse" is a myth and long-term compounding businesses will still emerge.
- Case in point: Cal took 4.5 years to reach $10M ARR, while many well-known SaaS companies took 4–14 years — time is all that's needed.
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