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What is CAGR in Startups?

Shev Shatzman avatar
Written by Shev Shatzman
Updated over 10 months ago

Compound Annual Growth Rate (CAGR) is the average growth rate of a market segment or investment over a specified period, typically 3-5 years.

Examples:
If a startup's revenue grows from $1M to $5M over five years, the CAGR would show the average growth rate each year during that period.

Related Terms:
​TAM, Top-Down, Market Overview

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