Inflection Points in a Startup

Over the course of a successful startup adventure there are numerous highs and lows. As much as people like to talk about hockey stick growth, it’s often more volatile at a day-to-day level. During the startup rollercoaster, there are a number of inflection points where the business hits a new level.

Here are a few thoughts on inflection points in a startup:

  • Revenue milestones are often major inflection points due to institutional investor appetite (e.g. once a startup hits $5 million in revenue, there’s an entire market of growth equity investors that become interested)
  • Major partnerships can be an inflection point, but the startup often won’t know for many months (or years!) due to how long it takes for things to kick in
  • Key hires often make a huge difference, and in some cases, result in an inflection point as the startup begins executing at a new level
  • New product releases, especially ones that address an area of significant pent-up demand, can propel the startup’s growth rate forward
  • Belief that the team can do so much more (this plays out when a team is trucking along, making good progress, only to realize that they just had the best month ever, by a large percentage, and that there’s no reason every month can’t be like the last one)

Inflection points are critical for startups, and sometimes aren’t even recognized until well after the fact. Look for inflection points and recognize them for what they are — the next level of growth for the startup.

What else? What are some other thoughts on inflection points in a startup?

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