Time to First Million ARR

One way to measure product market fit is to look at the time it takes between putting a product out in the market to the first $1MM in ARR.

Lenny’s Newsletter says 1 year from launch to $1MM ARR is considered good, 9 months is great.

Of course, there are plenty of examples of bad companies growing quickly and collapsing just as fast, but it’s a useful measuring stick, especially when you look at graphics like this:

See also:

• SaaS revenue per employee benchmarks for B2B companies
• Invest in lines not dots

Links to this note

• B2B Benchmarks

  A collection of benchmarks for B2B businesses (mostly relevant for early-stage SaaS).