STARTUP GROWTH TRAJECTORIES AND THE SAAS MENDOZA LINE

Summary from the TLDR Founders newsletter

The SaaS Mendoza Line, inspired by baseball, benchmarks growth rates to build a “line” from the early stages to IPO. If your growth rate stays above the line, you're deemed a high-growth startup and VC-backable. The Mendoza Line was first introduced six years ago, and since then, the standards for SaaS have increased significantly. Updated in 2024 to reflect higher IPO criteria, it suggests SaaS startups should aim for $250M ARR with 25% growth as a baseline pre-IPO, up from $100m ARR six years ago.