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What is a realistic growth rate?

Wednesday, October 21st, 2009 | commentary | No Comments

What is realistic growth rate to expect for a high-potential startup?

Here is an inflation-adjusted chart of 100 high-tech companies (click for interactive chart):

growth-chart

This chart is a useful reality check on business plans.  It’s very hard to be a “rocketship” – one of the red curve companies in the chart that attains $50mm within 5 years.  Neither Microsoft nor Oracle did so and if your business plan says you will, it’s probably incorrect.

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