The Unbelievable Growth and Power of Compounding Revenue

Name: The Unbelievable Growth and Power of Compounding Revenue
Uploaded: 2023-11-10T18:49:11+00:00
Duration: 53 s
Channel: Jason M. Lemkin
Description: In this segment of his talk, Jason M. Lemkin highlights the extraordinary impact of revenue compounding in SaaS businesses, using a concrete example of a…

10 Nov 2023 · 1 min

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In this segment of his talk, Jason M. Lemkin highlights the extraordinary impact of revenue compounding in SaaS businesses, using a concrete example of a company that grew from $7 million in 2017 to over $700 million in roughly six years—a 100‑fold increase. He emphasizes how such exponential growth feels both astonishing and, in hindsight, inevitable. Lemkin and a second speaker discuss the psychological shift required to recognize that moving from a 1‑to‑10 growth phase (which is improbable) to a 10‑to‑100 phase (which becomes inevitable) is a key mindset for founders and investors aiming for massive scale.

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So $7 million in 2017. So maybe some of you will be in the next SaaStr speakers in a few years. So I want to talk about this slide in a second, but let's just think about the sheer power of compounding revenue for a minute. I mean, it's one of the best, but $7 million when you came in 2017 and today you're coming up on $700 million, right? Over $700 million. Over $700 million. So that's a hundred— let's just slow this down. Let's enjoy the moment. A little bit of respect here. I mean, it didn't— did it feel like in 2017 you could be 100x bigger? I mean, even though you were growing like a weed, did you really feel you could be 100x bigger in, in that amount of time? It's 6 years, right? Is that 6 years? It's crazy.
Uh, well, I remember he had a phrase that says, uh, 1 to 10 is improbable. Yeah. So, uh, 10 to 100 is, uh, inevitable. Inevitable. We were