Jason M. Lemkin breaks down what VCs call elite growth rates: 197% for Series B/C rounds, 100% at growth stage, and nearly 500% for AI startups. He warns founders that accepting these terms means entering a social and legal contract with sky-high investor expectations.
This is a really interesting slide and let's slow down. According to Redpoint, what is a truly elite series B and C round? Not great but elite elite today sort of whiz or better for security for the B and C it's 197% growth. Guys that's crazy at the B or C rate 100% is elite at that rate let's be clear if you can grow 100% at the growth stage you will get and you take your time you will get multiple offers to fund your startup at a good valuation. If you can grow 100% with with not a crazy burn but 197% is elite. But for AI we're looking for crazy stuff. VCs are looking for almost 500% growth, 464% growth. So those super crazy AI valuations and they are crazy. They have echoes of 2021 like 2021 they're expecting insanely high growth. So be careful. Be careful what contract not just legal but social you enter into investors here.
