Full Definition
Revenue (also called "top line" or "sales") is the total income generated by a company from its business activities before any expenses are deducted. For startups, revenue growth rate is one of the most important metrics investors evaluate.
Revenue Types
- Recurring Revenue: Predictable, repeating income (subscriptions, SaaS)
- Transaction Revenue: Income per transaction or sale
- Service Revenue: Income from professional services or consulting
- Licensing Revenue: Fees for using proprietary technology
Revenue Growth Benchmarks
- Seed stage: Product-stage, revenue may be minimal
- Series A: 2-3x year-over-year growth expected
- Series B: 2x year-over-year growth
- Series C+: 50-100% year-over-year growth
Real-World Example
A marketplace startup generates $2M in GMV (gross merchandise value) per month with a 15% take rate, resulting in $300K monthly revenue.
Related Terms
Predictable, recurring revenue from subscriptions, measured monthly (MRR) or annually (ARR).
The strategy a company uses to generate income from its product or service.
The direct revenues and costs associated with a single unit of a business model (typically per customer).
The rate at which a startup spends its cash reserves, typically measured monthly.
The estimated monetary worth of a company, determined through various methods and negotiations.
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