Achieving Triple, Triple, Double, Double, Double for Tech Startups
No, we’re not talking basketball, although you’d be forgiven for mixing the terminology up as it’s so similar. A triple double in basketball is a rare and coveted achievement: Getting double figures in three out of the five statistical categories in just one game. In June 2022, Chicago Sky’s Candace Parker smashed WNBA records by getting the third triple double in her career with 10 points, 10 assists, and 14 rebounds. A startling achievement indeed. In investment terms, “triple, triple, double, double, double” is just as exciting and can lead to an even rarer achievement – the chance to become a fabled unicorn. Unicorns are startups valued at $1 billion or more, and according to respected business ezine Crunchbase, only 32 new unicorns “evolved” or were created in June 2022.
How can you use the triple, triple, double, double, double strategy to move towards the slam dunk of unicorn status?
What Is T2D3?
T2D3 is a simple abbreviation for triple, triple, double, double, double, and is much easier to use in conversations with your business strategy and marketing teams! The overall concept was introduced by tech venture capitalist Neeraj Agrawal of Battery Ventures, way back in 2015. He postulated that there are 7 ideal steps or phases to tech startup success via T2D3:
Create a product that fits the market
Achieve $2 million in annual recurring revenue (ARR)
Triple this to $6 million
Triple again to $18 million
The first doubling stage, to $36 million
Double again to $72 million
Double once more to $144 million ARR
The reason Agrawal picked the T2D3 is that as an experienced VC, he’s seen other successful tech startups follow the same trend. Salesforce, Zendesk, and Workday are just a few of the companies that appeared to follow this trend and then became absolute tech mainstays in the B2B sphere.
T2D3 – Easy, Right?
While the concept is simple, achieving the goals it sets may not be, especially in a crowded and competitive market. Tripling your ARR two years in a row only happens when you have an excellent product-to-market fit, which means a ton of research into customer pain points and a innate understanding of your Voice of Client or VoC. VoC practices ensure your customers or clients feel heard, understood,a nd that their preferences are taken into account. Read more about how Voc serves everyone in this blog.
Whatever your industry, if you can fix a problem that affects a significant sector of users in that industry, you’ve got a great chance of significant gains early on.
Getting your first $2 million and then tripling it usually means having the courage to let go of the attitude that you can do it all yourself. You can’t, and that’s okay. You need sales reps, marketing experts, and data analysts who can tell you exactly what impact your tech offering is having – what’s working and what’s not. The key to closing the right deals in this essential period is having a sales or marketing leader that can guide your whole team in the right direction.
That’s why so many startups choose to take on a fractional CMO during the early phase of their growth. Fractional marketing officers work with a wide range of startup businesses, so they bring experience and ideas that may not have occurred to your existing C-Suite members. Plus, they’re only with you for as long as you need them, so they don’t take a chunk out of your budget in the same way as a full-time, salaried executive does.
Cutting Through the Noise
More recent investment insights suggest that tech investors want decacorns, not unicorns, and are more likely to invest big bucks in companies tripling (or close to it) three years in a row. While this is certainly not set in stone, it does fall in line with a drop off in VC investment in 2022, as investors are adding to their portfolios far more cautiously thanks to global unrest and economic changes. To stand out from the crowd, tech startups need excellent branding, to really differentiate their offering from their competitors and cut through the noise.
Brand messages, visuals, and even the company name can make a huge difference in gaining the attention of investors who are likely to be enthralled by your particular products or services. Brand messaging is absolutely critical for early stage startups, as it defines your company personality and how you engage with potential clients or investors. Head over to Arch Collective to find out more about the complete Branding Package that can help you gain visibility and traction from the outset of your venture.
As well as developing your brand, as you grow and triple, triple, double, double, double your ARR, you’ll need to hire more sales reps, managers, and even executives. As a founder or entrepreneur, you can feel further removed from your original vision than ever before. It’s important to remember that this is a sign of growth and success, and you can put your energy into really cultivating the teams you want to work with and channeling energy into landing amazing deals.
Final Word
T2D3 is a great growth model for achieving that dazzling $1 billion unicorn status – as long as you stay focused and work with the right partners who have the experience to help get you there. Talk to Arch Collective about the right branding packages or marketing freelancers to set you on the path to success. Book your 15-minute introductory call with our expert marketing team who can connect you to the right solutions for your tech proposition.
If you want the ability to drive more revenue in just 10 days, check out the Arch Collective Brand Messaging Framework Course.
