The document discusses benchmarks for estimating startup growth rates. It finds that the average startup forecasts 120% growth in the first year, 83% in the second, and 60% in the third. U.S. small companies are the most ambitious, forecasting 740% first year growth on average. Industries like financial services and consumer goods expect the highest growth rates among different sized startups. The time from $0 to $1M in annual revenues is estimated to be 24 months on average, ranging from 18 months in industries like aerospace to 43 months in competitive consumer industries.

1. STARTUP GROWTH RATE:
BENCHMARKS TO ESTIMATE YOUR
STARTUP’S GROWTH

2. The average company forecasts a growth rate of 120%
for their first year
The projection for
the second and
third year are
83% and 60%,
respectively

3. U.S. “small” companies are the most ambitious
They forecast on
average 740%
growth in their first
year

4. Once the company is slightly more established, the ambition mostly comes
from India and Israel, outclassing their American counterparts
U.S. companies become more conservative as they grow

5. Among companies in
the Small class,
Financial Services is
projecting the largest
growth of 900%
during the first year.
The sector with the highest growth expectation is…

6. As the companies
grow a little larger, we
see that Consumer
Goods expects the
highest growth rate,
while Wellness and
Fitness slides behind
in last position.
Consumer Goods takes the lead in the medium class

7. The Large class
shows similar
behaviors in terms
of forecasted
opportunity size. It is
led by IT Services
and tailed by Retail.
IT Services project the highest growth rate among the
larger companies

8. US startups show
higher ambition and
forecast the
timeframe to 21,21
months on average.
Israel is the most
conservative of the
studied countries with
24,34 months.
It takes 24 months from $0 to $1M in annual revenues

9. Aerospace, Chemicals
or Airlines industries
expect shorter
timeframes - 18
months. Consumer
companies in
competitive industries
forecast 43 months to
reach the $1m target.
Breaking down the values by industry gives us more
insights into common timeframes

10. About the data
The data used in this analysis comes from the Equidam
database. Equidam is the pioneer in online automated
valuation for startups and private companies.
As part of its activity, Equidam collects financial projection
data from users, that can never be shared unless aggregated,
and uses it to accomplish its mission of increasing valuation
objectivity and accessibility.
The dataset surveys more than 15000 companies in 78
countries, spanning from very early stage and pre-revenues
startups to VC backed or more traditional companies.

11. Equidam relies on a database of 10M data
points on market transaction to find similar
companies and provide
accurate financial parameters and valuation!
Try it out for free at:
www.equidam.com