The average growth rate for companies between $1-10MM of ARR was nearly 200%, decreasing to 60% for companies over $100MM+. Growing ARR (or CARR) is every cloud company’s North Star metric. Scaling to $100 Million from Bessemer Venture Partners Takeaways from Scaling to $100 Million

For more than a decade, Bessemer has made over 200 cloud investments and has one of the largest cloud portfolios of any venture firm in the world.* As we share this information with leaders like you, we hope this body of analysis proves to be a valuable resource for what growing your cloud business looks like at every stage.ĭownload our benchmarking templates to show off your metrics and how your company is scaling to new heights. We’re releasing “Scaling to $100 Million” as the industry’s definitive benchmarking report for cloud companies looking to scale to new heights. Considering these factors, only the highest-flying, venture-backed companies have the opportunity to learn from the stories of the past, leaving other startups at an inherent disadvantage-until now! Private companies lack reporting requirements that would make their benchmarks known, and backers of private companies hold their portfolio company information close to the chest. But not everyone has access to this type of information. If you’re a cloud startup seeking to emulate the success of companies like Shopify, Procore, and Twilio, understanding how your predecessors grew and achieved key milestones is a critical part of the equation. Private market financial benchmarks are some of the most elusive financial data points in the world. Leaders, like you, want to model their businesses around these benchmarks to achieve their goals. When it comes to building and scaling a cloud business, founders, CEOs, CFOs, and board members alike want to know what “typical” and “best-in-class” look like. As growth investors at Bessemer, we hear the same benchmarking questions over and over from portfolio companies as they mature: What should my gross margin be? How much should I be spending on R&D as a percent of revenue? How does my growth rate compare to peers in the market?

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