What is Growth in Revenue Since the Previous Raise?
Growth in Revenue Since the Previous Raise measures how much a company's revenue has increased since its last capital funding round. It shows how effectively raised capital translated into revenue growth.
Growth in Revenue Since the Previous Raise Formula
How to calculate Growth in Revenue Since the Previous Raise
A SaaS company had $100,000 ARR before its seed round. After deploying that capital, ARR climbed to $200,000.
Growth in Revenue Since the Previous Raise = ($200,000 / $100,000) - 1 = 100%.
The company doubled its revenue after the raise, demonstrating strong capital efficiency going into the next funding conversation.
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How to visualize Growth in Revenue Since the Previous Raise?
It is best to visualize growth metrics with line charts. Use a line chart to track your growth in revenue since the previous raise - perhaps adding notes indicating the details of the raise. This will let you quickly and easily see how raised capital has had an impact on your revenue. Take a look at the example:
Growth in Revenue Since the Previous Raise visualization example
Growth in Revenue Since the Previous Raise
Line Chart
Here's an example of how to visualize your Growth in Revenue Since the Previous Raise data in a line chart over time.
More about Growth in Revenue Since the Previous Raise
By measuring how much your revenue has increased since your previous raise, you can assess three things: how efficiently you deployed raised capital, how well you budgeted that capital, and how increased visibility and opportunities from the round contributed to growth.
Using this metric alongside others
No single metric tells the full story. Growth in Revenue Since the Previous Raise is most useful when paired with related metrics that give investors a complete picture of performance between rounds.
| Metric | What it adds |
|---|---|
| Growth in Valuation Since the Previous Raise | Shows whether valuation kept pace with revenue growth |
| Burn Multiple | Reveals how much cash was burned per dollar of new ARR |
| Revenue | Provides the underlying trend behind the growth rate |
Keep these numbers on hand when approaching investors for your next round of funding.
Best practices
Keep a clear record of the revenue baseline at the time of each raise. Without a clean snapshot, the denominator in the formula becomes an estimate, which undermines the metric's credibility with investors.
- Define the baseline precisely. Use ARR or MRR at the close date of the funding round, not a rolling average.
- Normalize for time. If the period since the raise is short, annualize the growth rate so it is comparable across rounds and companies.
- Segment by revenue type. If your revenue mix includes one-time and recurring components, track them separately to avoid distorting the picture.
- Present in context. A 100% growth rate looks different if it took 6 months versus 24 months. Always include the time period when sharing this number.
Common challenges
Inconsistent baseline definitions create the most common measurement problems. If the baseline shifts between reporting periods, the metric loses comparability. Agree on the definition early and document it.
Short time horizons can inflate the number. Revenue may spike immediately after a raise due to sales momentum that was already building before the round closed. A longer measurement window gives a more accurate picture of the capital's actual contribution.
Mixing revenue types distorts the metric. Including a large one-time contract in the post-raise period can make capital efficiency look stronger than it is. Recurring revenue is the more reliable signal for most SaaS businesses.