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T2D3

T2D3 is a growth benchmark for venture-backed SaaS: after reaching ~$2M ARR, triple revenue twice, then double it three times — reaching roughly $144M ARR in five years. It sketches the trajectory that historically produced unicorn outcomes.

Formula

From ~$2M ARR: ×3 → $6M, ×3 → $18M, ×2 → $36M, ×2 → $72M, ×2 → $144M

Worked example

A company at $2M ARR following T2D3 would need to add $4M of net new ARR in year one — then $12M the next year. The absolute bar rises even as the multiple falls.

Coined by Neeraj Agrawal of Battery Ventures in 2015, T2D3 became shorthand for "venture-scale growth". It is a pattern observed in outliers (Salesforce, Zendesk, Marketo), not a plan most companies can or should follow.

Its real use is calibration: it tells a founder what growth rate the top decile achieved at each stage. Missing T2D3 does not make a business bad — plenty of excellent companies compound at 40–60% — it makes it differently fundable.

Compute it: MRR & growth calculator

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