T2D3

Not a KPI per se, T2D3 can serve as a north star. Coined by Neeraj Agrawal of Battery Ventures, it’s a SaaS growth model that stands for “triple, triple, double, double, double” annual revenue growth. It outlines a trajectory from $1 million to over $100 million in ARR within 5–6 years, aiming for a $1 billion valuation.

Applied to a starting point of $1M ARR (~$83K MRR), here’s the progression with implied annual growth rates:

Year 0: $83K MRR
Year 1 (×3 | +200% YoY): ~$250K MRR
Year 2 (×3 | +200% YoY): ~$750K MRR
Year 3 (×2 | +100% YoY): ~$1.5M MRR
Year 4 (×2 | +100% YoY): ~$3M MRR
Year 5 (×2 | +100% YoY): ~$6M MRR

If you want to translate that into a rough monthly compounded growth rate:

Triple (×3/year): ~9.6% MoM
Double (×2/year): ~5.9% MoM

That’s the hidden punchline of T2D3: sustaining ~10% monthly growth early on, then ~6% as you scale—extremely demanding, and why very few companies actually achieve it.