AI has introduced a new trend in the startup arena: companies rapidly achieving multimillion ARR (annual recurring revenue).
Numerous accounts describe founders leaping from zero to $10 million, or even $100 million, in annual recurring revenue in mere months.
However, this alone doesn’t guarantee long-term success. VCs emphasize that sustainable growth is more crucial than rapid growth. Investors prefer companies with low customer churn rates, indicating satisfied customers. They want recurring revenue to be stable and grow, rather than falter.
Nevertheless, this trend is gaining traction. According to Stripe’s annual report released Tuesday, the payments company had more new businesses start using its products in 2025 than ever, with 57% based outside the U.S. This group grew 50% faster than those who began using Stripe in 2024. While exact numbers were not disclosed, Stripe noted that twice as many startups reached $10 million in ARR within three months in 2025 compared to 2024.
The report also highlighted a 41% increase in company formations via Stripe Atlas — Stripe’s business incorporation tool — last year. Of these new startups, 20% secured their first customer within 30 days, up from 8% in 2020, illustrating the swift pace of this new wave of entrepreneurs.
In contrast, in 2024, founders were still celebrating reaching $10 million in ARR in three years, which remains a commendable achievement.
For those on social media commenting that “Bootstrapping to $10M ARR is easier and less risky than creating a VC-backed unicorn,” or stating, “AI-native startups hitting $10M ARR with just three people are rewriting the entire playbook,” there is now data to support these claims.