Bessemer Venture Partners’ Post

🚀 AI startups are hitting $1M+ ARR at the Series A or even earlier, in some unique cases. We're living through an unprecedented time for startups. But how do you get from $1M to $10M ARR? At $1M ARR, founders are often the best salespeople — securing reference customers, refining messaging, and closing deals. (We gave you that playbook last week — linked below!) But founder-led sales doesn’t scale. The transition to a sales-led model is both necessary and risky — hiring sales reps is expensive, and the process must evolve and continuously be refined. Here’s how to de-risk the journey to $10M ARR: 1️⃣ Experiment before scaling sales – Hone your playbook early. What’s your target ACV? Who’s your ICP? What’s the best sales motion? Figure this out before hiring at scale. 2️⃣ Respect the ramp – Start with 1-2 sales reps. Only expand once they hit quota autonomously and lead velocity outpaces quota capacity. 3️⃣ Build customer success early – The best GTM engines aren’t just about selling—they drive product iteration. Customer success teams help deepen ICP fit, improve retention, and unlock expansion. To gauge your go-to-market team’s success, track these key metrics: 📈 ARR Growth Rate – A strong indicator of product-market fit and demand. Market-leading companies see consistent year-over-year revenue growth. 💰 CAC Payback – The time it takes to recover customer acquisition costs. A shorter payback period means better sales efficiency. 🔄 CLTV / CAC Ratio – Measures customer profitability. A ratio above 1x means a customer generates profit beyond their acquisition cost. 📊 Gross Margin – Revenue minus delivery costs. The lower the service costs to implement your product, the higher your profit margins. The bottom line? Your GTM motion should evolve at each stage. Sell, learn, refine, scale. Sign up for our $10M ARR playbook >>> https://lnkd.in/gW9nwuzW #SaaS #AI #GTM #Sales #ScalingStartups #TechonLinkedIn