Compound Growth
Noun · Startup & VC
Definitions
Growth that builds on prior growth so gains accumulate multiplicatively over time rather than linearly. Startups care about compounding because small rate differences become large outcome differences over long periods.
In plain English: Growth that builds on itself over time.
Example: "At that retention level, the business still had strong compound growth even with modest acquisition."
Related Terms
- Burn Multiple
- Community-Led Growth
- Conversion Rate
- CPM
- Customer Acquisition Cost
- Customer Expansion
- Customer Retention
- DAU
- Dead Cat Bounce
- Durable Growth
- Escrow
- Geo-Expansion
- Growth Capital
- Holding Company
- Investor Relations
- Key Performance Indicator
- Linear Growth
- Liquidation
- Liquidity
- Market Penetration
- MBO
- Multivariate Testing
- Activation Rate
- Aftermarket
- Base Case
- Basis Point
- Blended Rate
- Capital Efficiency
- Net Promoter Score
- Onboarding Metric
- Payback Period
- Primary Market
- Product-Channel Fit
- Profit Center
- Public Offering
- Revenue Growth
- Revenue Per User
- Risk Capital
- Run Rate
- SaaS Metric
- Startup Metric
- Viral Coefficient