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metrics

Growth Rate

Percentage increase in a metric (revenue, users) over a specific time period.

Growth Rate measures the percentage change in a key metric over time. For SaaS, MRR growth rate is the most common indicator. VCs look for consistent month-over-month or year-over-year growth as a sign of product-market fit.

Formula

Growth Rate = (New Value - Old Value) / Old Value × 100

Tips

  • 10% monthly growth = 3x annual growth
  • Track both growth rate and absolute numbers
  • Sustainable growth > spiky growth

Related Terms

MRRARRPMFSERIES AVALUATION

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