starting from $1 million a year, you’d need to grow at an average rate of 2.4x over 6 years to hit $200 million. This is an average growth rate, and typically products grow fastest in the early years when revenues are small. A trajectory like 5x 4x 3x 2x 1.5x 1.5x would work, as would 4x 3.5x 3x 2x 2x 1.2x. Usually by the time a company is doing this analysis, they already have a year or two of data, and they can use this equation to figure out what the rest must look like. Or they can take empirical data from companies that are further along to extrapolate the first few years.
