Stripe has reported a significant increase in startups reaching $10 million in annual recurring revenue (ARR) within three months, with double the number of companies achieving this milestone in 2025 compared to 2024.
The payments giant revealed this trend as part of its annual report, which also showed a 50% faster growth rate among new businesses that started using Stripe products in 2025 compared to those that began in 2024. Additionally, 57% of these new businesses were based outside the United States.
According to Stripe, 20% of new startups that used its business incorporation tool, Stripe Atlas, charged their first customer within 30 days, up from 8% in 2020. This rapid growth is a testament to the changing landscape of startup development, with many founders now able to reach significant revenue milestones in a matter of months.
The Funding Environment
Venture capitalists emphasize that durable growth is more important than ultra-speedy growth, with a focus on low customer cancellation rates and consistent revenue expansion. However, the phenomenon of startups quickly reaching $10 million ARR is undeniable, with many industry leaders taking notice.
As reported by TechCrunch, investors such as Bill Gurley are advising founders to take risks and not play it safe in their career endeavors. This mindset is reflected in the growing number of startups achieving rapid success, often with the help of innovative technologies like AI.
Market Context
The rise of AI-native startups is rewriting the playbook for entrepreneurship, with many companies now able to scale quickly and efficiently. As the startup ecosystem continues to evolve, it will be important to monitor the growth and success of these new businesses, and to understand the factors that contribute to their rapid expansion.
With the increasing number of startups hitting $10 million ARR in just three months, the industry is likely to see a shift in the way companies approach growth and development. As Stripe's annual report highlights, the pace of startup growth is accelerating, and it will be exciting to see how this trend continues to unfold in the coming years.
