Mark Gritter (markgritter) wrote,
Mark Gritter
markgritter

Math Lesson

Why do so many people say "logarithmic growth" when they mean "exponential growth"? For example,


Who is a good fit for investment capital?

* Hyper-growth oriented ventures with logarithmic growth curve. An early stage investor wants 5-10x (plus) return in short period of time


Here is a company with exponential growth. Each additional million dollars takes a smaller amount of time:

2009: $1m in sales
2010: $4m
2011: $16m
2012: $65m
2013: $250m
...

Here is a company with logarithmic growth. Each additional million dollars takes a larger amount of time:

2009: $1m in sales
2010: $2m
2011: $2.6m
2012: $3m
2013: $3.3m
2014: $3.6m
2015: $3.8m
2016: $4m
...
Tags: math, mathematics, rant, startup
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