T2D3: The Secret to Unlocking SaaS Growth and $1B Unicorn Valuation

In this post, understand what does T2D3 mean and the secret stages that are needed to unlock SaaS growth and $1B unicorn valuation.

T2D3 Unlocking SaaS Growth and $1B Unicorn Valuation
T2D3 Unlocking SaaS Growth and $1B Unicorn Valuation

So, what does this term T2D3 even mean? ‘Triple, triple, double, double, double’ is what it means. Let me break it to you in simple words. It follows the growth of a company where it triples its ARR for the coming two years and then doubles it in the next three years to come. The idea and concept of T2D3 is best implemented when your business has already accumulated a loyal customer base and has gotten a minimum of 1 or 2 million dollars as ARR. Well, in this post we will walk you through the secret stages that are needed to unlock SaaS growth and $1B unicorn valuation. Without any further ado, let us begin.

Stages of SaaS growth via the T2D3 method

#1 Stage: Knowing the pain points of your customers

#2 Stage: ARR of $2 million

#3 Stage: It is time to triple your ARR to the tune of $6 million

#4 Stage: It is time to triple your ARR to the tune of $18 million

#5 Stage: It is time to triple your ARR to the tune of $36 million

#6 Stage: It is time to triple your ARR to the tune of $72 million

#7 Stage: It is time to triple your ARR to the tune of $144 million

Let us dive right into the seven stages as mentioned here and explore what they have in common and what is it that they have to teach us with. Let us start.

#1 Stage: Knowing the pain points of your customers

Before delving into the levers that are responsible for growing SaaS, it is more than necessary to know and understand the pain points of the customers. For this, the best way to know about their pain points is by conducting a short survey or asking them directly about their issues. Now, once you have the answers, you can figure out which ones to prioritize at the moment. Before launching your product live, go for a test launch and know what is it about the product that your audience is liking and disliking about your product.

#2 Stage: ARR of $2 million

Know when is the right time to land the target customers and prepare your final pitch accordingly. When you are at this stage, you should have acquired a minimum of 30 to 60 customers. According to the principles of T2D3 method, this might take about a minimum of 2 years to reach and complete this stage of SaaS growth. Again, this depends on your current customer base and the profit you are generating per year at this point of time.

#3 Stage: It is time to triple your ARR to the tune of $6 million

Now, in order to reach the 3rd stage, you will have to choose between two ways. The first approach being adapted by most of the SaaS startups today, which is trying to close every deal that comes their way. However, it goes with a flaw that might or might not guarantee the growth of SaaS at all times. And thus, the second approach is getting a team of highly expertized sales and VPs that have a substantial knowledge on this stream. They will help you analyze data and reach the third phase of T2D3.

#4 Stage: It is time to triple your ARR to the tune of $18 million

Now, you are officially in the fourth stage of the SaaS growth. This is the stage where you can dare to make big moves, land on to bigger customers and hire new managers. It is time to add more sales reps into your team to manage the sales. Note that from here on, you will be climbing high, therefore, take wise steps and plan accordingly.

#5 Stage: It is time to triple your ARR to the tune of $36 million

To dive into the fifth stage, you need to get your hands on an experienced team of about 3 to 5 sales reps to begin with. The fielding team should comprise of around 20-30 sales rep with 3-5 front line managers. Also, note that this is the stage of your SaaS growth, where you must plan to expand your chain internationally as well. It is better to go deep in the market than go wide at this phase of T2D3.

#6 Stage: It is time to triple your ARR to the tune of $72 million

Now you are on the second last stage of your SaaS growth. This is the stage of T2D3 when the founder or CEO should make tough operational decisions. This is also the stage where you must strengthen the relationship and terms with your reseller. This is where you need to zero in on quality over quantity.

#7 Stage: It is time to triple your ARR to the tune of $144 million

As per to most of the industrial experts, the value of a company is created post the IPO. So, it is wise to invest during the early stages and the later stages of a venture. This 7-stage T2D3 approach is the early stage to set your SaaS business on the right track. This is when you are close to the $1 billion valuation company, but the next scene is bigger than that.19

Parting Thoughts

At the end of the day, it is up to you to decide what is the best strategy for your SaaS business to grow and leverage from. There might come a time where you need to focus on high profit or high growth. This tends to be a largely debated topic, especially in the SaaS space. But going with the above mentioned T2D3 framework, you are going to go with growth.

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