T2D3 is shorthand for the ARR growth trajectory that defines successful venture-backed SaaS: Triple → Triple → Double → Double → Double.
The framework was popularized by Neeraj Agrawal at Battery Ventures and describes the expected growth pattern from ~$2M ARR to $100M+ ARR over roughly 5–6 years.
The T2D3 trajectory
| Year | Starting ARR | Growth | Ending ARR |
|---|---|---|---|
| Year 1 | $2M | Triple (3×) | $6M |
| Year 2 | $6M | Triple (3×) | $18M |
| Year 3 | $18M | Double (2×) | $36M |
| Year 4 | $36M | Double (2×) | $72M |
| Year 5 | $72M | Double (2×) | $144M |
Starting at $2M ARR and following T2D3 → $144M ARR in 5 years.
Is T2D3 required?
T2D3 is a benchmark for top-decile VC-backed SaaS, not a universal requirement. Bootstrapped and capital-efficient businesses often grow slower and are still excellent businesses.
For VC-backed SaaS seeking Series B and beyond, investors will compare your growth trajectory to T2D3. Tracking below T2D3 isn't a rejection criterion, but it shapes valuation expectations.
Monthly growth rate equivalent
T2D3 requires roughly: - 3× annual growth = ~9.6% monthly growth rate - 2× annual growth = ~5.9% monthly growth rate
Use the ARR Calculator's projection feature to see how your current monthly growth rate tracks against T2D3 milestones.
When T2D3 doesn't apply
Bootstrapped SaaS: Capital constraints make T2D3 rates impossible without external funding. Aim for 50–100% YoY growth at $1M–$5M ARR.
Services-augmented SaaS: If professional services are a large portion of revenue, pure ARR growth will be slower. Separate recurring ARR from services revenue in your reporting.
Enterprise SaaS: Long sales cycles mean ARR growth can look lumpy quarterly. Annual comparisons smooth this out.