Continuing with yesterday’s post on Startup Stages by Revenue, one stage that can can use better naming delineation is the Seed Stage. The Seed Stage, while still early, represents a huge range, especially when considering the difference between a startup with $50,000 in annual recurring revenue (ARR) and one with $500,000 in annual recurring revenue. At $50,000 ARR, the startup might only have 10 customers paying $5,000/year whereas the $500,000 ARR startup might have 100 customers paying $5,000/year. 100 customers implies product/market fit, many elements of a repeatable customer acquisition process, and close to a sustainable level of success. So, what’s a better name for these Seed Stage startups that are much farther along, but still tiny? And what’s a good revenue cut-off? $100,000? $250,000? $500,000?
Here are a few naming ideas for Seed Stage startups that have at least $250,000 in revenue (a big startup milestone):
- Six Figure Seed Stage
- Late Seed Stage
- Product/Market Fit Seed Stage
- Sustainable Seed Stage
Seed Stage startups with hundreds of thousands of dollars of revenue are very different from Seed Stage startups with a working product and a couple customers. In startup communities, especially emerging communities outside the major startup centers, better naming delineation for Seed Stage startups will help identify high potential companies, engage more investors, and result in more success stories.
What else? What’s a better naming convention to differentiate between Seed Stage startups?