Graduation Criteria

You might consider yourself “graduated” or at least at the pinnacle of these private growth stages if:

  1. Stable or Improving CAC - Despite scaling, your acquisition cost remains steady or decreases on a relative basis.
  2. Consistent Product Launches - New features or product lines roll out predictably, with minimal disruption or delays.
  3. Predictable Expansion Revenue - You have well-established upsell and cross-sell motions that reliably grow existing customers’ revenue over time.
  4. Optimized Global Operations - You have multiple offices or regions fully integrated into your corporate systems and culture.
  5. Robust Remote Management - You handle remote employees seamlessly, with no drop in productivity or culture alignment.
  6. Strong Executive and Mid-Level Leadership - Your entire leadership structure is capable of running the business without daily input from the CEO.
  7. Viable Path to Public Listing or $10B+ Exit - You have the scale, growth, and financial rigor that public markets or large PE funds find attractive.
  8. Advanced Governance and Compliance - You have a mature board, possibly with independent directors, and meet or exceed compliance standards in your industry.

Favorable Cash Flow Dynamics - You’re either profitable or have a clear timeline to profitability. Investors see you as a relatively safe bet.