People often view the entrepreneurial journey of building a market-leading, VC backed software company as a continuous process, but that’s not the case. As companies move from one phase to the next, things change dramatically. What—or who—drives success at one stage can often lead to failure at the next. While the startup journey is widely recognised as tough, chaotic, and risky, its discontinuous nature is less understood. A better analogy is to think of it as a step function, where the challenges at each stage are distinctly different.

Achieving $100m in revenue, and doing so within ten years, is a critical milestone for VC-backed SaaS companies. The $100m in revenue is important because that has the strongest correlation with enduring value. The ten years is important because that is the typical term of the majority of VC funds. Even more so because, as we will discuss later, after ten years achieving $100m revenue becomes less likely not more.Thousands of companies raise Series A rounds every year, but a far smaller number achieve that $100m milestone.

This inspired us to ask ourselves a few questions:

1. What is the probability of that outcome - from raising VC money to $100m ARR?
2. What happens to the companies that do not achieve that $100m goal?
3. While recognising that each company is different, is it possible for us to isolate the core operating principles that underpin the very best companies? Also, how they progress from one stage to the next?
4. And, perhaps even more importantly, can we identify the mistakes that undermine the rest and help our companies avoid them?

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Start Stage (From Idea to $10M ARR)

The journey begins with finding a product-market fit and establishing an initial go-to-market model. This stage, often described as "successful chaos," involves building an MVP, moving beyond founder-led sales, and attracting a base of core customers. Companies at this phase should focus on experimentation, lean spending, and honing their market strategy, avoiding common pitfalls like premature scaling or attracting unsuitable customers.

Build Stage ($10M to $30M ARR)

Known as "death valley" for many startups, this phase centres on establishing a scalable go-to-market (GTM) fit. With a shift from generalists to specialists, companies must prioritise customer journey mapping, data-driven decisions, and predictable growth strategies. The risks are high here—companies that don’t find GTM fit often stall or need to be acquired, but those that do can build a foundation for future exponential growth.

Scale Stage ($30M to $100M+ ARR)

For companies that make it past the Build phase, the Scale stage is about managing complexity and achieving sustained growth. Organisations now need to balance aggressive expansion with operational efficiency, focusing on mature leadership, technical excellence, and possibly even pursuing inorganic growth through acquisitions. Key principles here include maintaining focus on best customers, optimizing internal processes, and preventing “tech debt” from stalling progress.

Key Takeaway: Growth as a Step Function

The journey from startup to $100M+ is rarely linear. Instead, Notion Capital describes it as a series of "step functions"—distinct phases requiring new strategies, people, and processes. Founders must adapt continuously, learning from common mistakes and keeping an eye on evolving metrics, customer demands, and market opportunities. Achieving growth in the startup world requires understanding each stage's demands, avoiding common traps, and continuously evolving to meet the challenges at every new milestone. This stepwise approach is essential to unlocking long-term success and sustainable growth in a competitive market.