The T2D3 Model
Triple, Triple, Double, Double, Double to $100M ARR
From Revenue Architecture by Jacco van der Kooij
T2D3 is the gold standard growth trajectory for SaaS companies aspiring to reach $100M ARR. It represents the pace required to build a unicorn-scale business: Triple your ARR for two years, then double it for three years. This model has been validated by analyzing hundreds of successful SaaS companies.
The Path to $100M ARR
Why T2D3 is Achievable
Math-Based, Not Magic
T2D3 isn't arbitrary - it's derived from analyzing successful SaaS companies. The growth rates align with:
- • Market size requirements for $100M+ ARR
- • Typical investor expectations (Series A → IPO)
- • 5-7 year timeframe to liquidity
- • Proven by companies like Salesforce, Workday, Zoom
Slowing is Natural
The deceleration from triple to double is intentional:
- • Smaller base makes 3x easier early on
- • Market penetration requires adjustment
- • Systems and processes need to mature
- • Focus shifts from speed to efficiency
Clear Milestone Tracking
T2D3 provides unambiguous targets:
- • Know exactly where you should be each year
- • Easy to communicate to team and investors
- • Helps with hiring and resource planning
- • Clear signal if you're on/off track
Fundability Aligned
T2D3 aligns with typical funding rounds:
- • Year 0-1: Seed/Series A ($2M → $6M)
- • Year 2: Series B ($18M)
- • Year 3-4: Series C ($36M → $72M)
- • Year 5+: IPO-ready ($144M+)
What T2D3 Requires
1. Large Addressable Market (TAM > $1B)
You can't T2D3 in a small market. Need room to grow to $100M+ without hitting ceiling.
2. Strong Product-Market Fit
Early customers love the product. High NPS, low churn, organic referrals happening.
3. Repeatable Sales Motion
Proven playbook for customer acquisition. CAC payback < 12 months, LTV:CAC > 3:1.
4. Capital to Fuel Growth
T2D3 requires aggressive investment. Need funding to support 100-200% growth.
5. Operational Excellence
Systems, processes, and team must scale. Can't grow 3x annually with chaos.
Compare Your Growth to T2D3
If you're at $10M ARR:
Note: Not every company needs to follow T2D3. It's specifically for venture-backed SaaS companies aiming for $100M+ ARR. Profitable, slower-growth businesses can be very successful too.
Track Your T2D3 Journey
Use these calculators to ensure your unit economics support T2D3 growth: