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Saastr

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Dear SaaStr: We’re at $8m ARR, Growing 50% and Bootstrapped. Should We Raise a Growth Round?

  • At $8M ARR, being breakeven, growing at 50% annually and having an LTV/CAC of 5+, you have the option to raise a growth round, but it depends on your goals.
  • Staying bootstrapped or lightly capitalized could be better for aiming for a strategic acquisition in 5 years, especially if you maintain steady growth and low churn to reach $20M ARR.
  • If your aim is to achieve higher revenue milestones like $50M or $100M ARR, raising a growth round may be necessary to fuel that growth, especially if your industry is competitive.
  • However, raising funds should only be considered if it can significantly accelerate your growth, as it might make exits more challenging if growth slows down, while bootstrapping offers control and flexibility.

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