How to grow 5x in 5 years

It doesn’t take much to do a 5x MoM...
 
Keep this heuristic in mind: it only takes a 38% 5-year CAGR to 5x your revenue.

Without dilution or multiple contraction (entering and exiting at the same multiple), this translates into 5x your investment.
 
With a robust NDR this is more achievable that it seems. Take the company below, going from $10M of ARR to $50M (5x, adding $40M). With a 120% NDR, half of your new ARR will come from expansion alone. You then simply need to add less than 1/5th of your existing base in new customers.
 
Breaking it down for those new to the SaaS industry: to achieve 38% growth, 20% could come from a 120% NDR, with the remaining 18% from acquiring new customers.
 
This simple yet powerful insight serves as a reminder of the significant impact of steady growth over time.