Reach $1M ARR

Proof required

Submit: (a) a one-page revenue motion analysis showing the source of your first $100K ARR (channel breakdown, ICP profile, average deal size); (b) your three core revenue-generating activities with the weekly cadence you ran them at to reach $100K; and (c) your scaling hypothesis — how many weeks of those activities at what expanded cadence equals $1M ARR.

What gets checked

• Revenue breakdown is from your accounting or billing tool, not estimated — cite the source.
• Three core activities are specific and repeatable (e.g. '20 outbound emails per day targeting VP Engineering at 50-200 person SaaS companies'), not vague ('outreach').
• Scaling hypothesis includes a realistic timeline that accounts for diminishing returns at higher cadence — not linear extrapolation.

Common mistakes

• Assuming the motion that got you to $100K will get you to $1M unchanged — it usually won't, and identifying where it breaks is the goal.
• Analysis based on revenue memory rather than billing tool data — introduces errors that make the hypothesis unreliable.
• Scaling hypothesis that just multiplies the current team's capacity — doesn't account for hiring, process, and efficiency changes.

Resources

What a verifier looks for

• Ask the founder to describe the single activity that would most directly move the ARR number this week — vague answers mean the motion isn't documented enough to execute.
• Ask whether the scaling hypothesis assumes linear or diminishing returns and why — the answer reveals how carefully it was thought through.
• Check that the revenue breakdown references a real billing system, not founder recollection.

Proof required

Submit your three SOPs, evidence that each ran at least twice with someone other than the founder executing (e.g. a team member's execution log, a CRM screenshot showing activities by a non-founder), and a one-paragraph note on what you had to fix after the first non-founder execution of each.

What gets checked

• Each SOP is specific enough that a new hire on day one could execute it — vague 'reach out to customers regularly' instructions are not SOPs.
• Evidence of non-founder execution is documented, not stated — CRM records, task completion logs, or equivalent.
• Fix note names the specific breakdown that occurred in the first non-founder execution — 'it went fine' means the SOP wasn't tested properly.

Common mistakes

• Writing SOPs but not testing them with someone else — you find out what's missing only when someone else tries to follow it.
• Customer success SOP that doesn't have a renewal trigger — you'll lose customers at contract end without a systematic renewal process.
• Treating founder-led sales as not repeatable — it must be documented even if imperfectly, or you can't hire the first sales rep.

Resources

What a verifier looks for

• Ask the founder to hand over one SOP and walk you through the most recent execution — you're checking whether the SOP matches what actually happened.
• Ask what broke in the first non-founder execution of each process and what they changed.
• Ask what would happen to the customer renewal rate if the founder were unavailable for 4 weeks — the answer reveals how complete the customer success SOP is.

Proof required

Submit a screenshot or export from your billing/subscription management tool showing the date and total ARR crossing $1M, your ARR milestone document, and a one-paragraph reflection on the market insight you've gained.

What gets checked

• ARR is from subscription or recurring contract revenue — not one-time payments, not projected ARR from pilots.
• Billing tool evidence shows the exact date ARR crossed $1M — not an estimated date.
• Market insight reflection names something specific that changed your understanding of the customer, competitor landscape, or go-to-market motion — not a general 'we learned a lot' observation.

Common mistakes

• Counting annual contract value for multi-year deals without confirming renewal is contractual — ARR requires recurring revenue, not committed spend.
• Crossing $1M ARR but not documenting the channel breakdown — the channel data is what tells you where to invest next.
• Reflection that describes the growth story rather than a genuine insight — the insight should be something the founder would have found counterintuitive at $100K ARR.

Resources

What a verifier looks for

• Ask the founder to show the billing tool export with the date ARR crossed $1M — the date must be traceable to a real system record.
• Ask what the net revenue retention is — NRR above 100% is a signal of a healthy $1M ARR business; below 90% means churn is a critical issue at this stage.
• Ask what the most counterintuitive thing they now know about their market is — if the answer could have been known before building the business, it's not a genuine insight.