According to The Narwhal Project, following are the typical metrics needed to hit escape velocity and create a unicorn ($1B valuation):
- Revenue Requirements: Companies typically need around $125 million revenue to reach unicorn status.
- Market Size: Targeting a market of about $25 billion within 10 years is crucial.
- Competitive Differentiation: Achieving a 50% differential in a customer metric.
- Product/Market Fit: Aiming for a Net Promoter Score over 30.
- Marketing Efficiency: Keeping marketing and sales costs below 33% of the next year’s revenue.
- Capitalization: Generally, $2 of capital is needed for every $1 of revenue.
- Growth Rate: An average annual compound growth rate of 75% over 10 years is ideal.
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