Why were the maturity indicators and thresholds in the Portfolio Alignment Framework chosen?

The maturity indicators in the Portfolio Alignment Framework (annual revenue, total equity raised, headcount) are meant to be objective, measurable, and broadly available to the majority of venture investors. A company is considered to be at a given maturity stage when it has reached the threshold on two of the three maturity indicators.

The maturity stage thresholds are designed to approximate portfolio company maturity and the associated climate practices feasible at that stage. The approach of “two out of three” was chosen to reduce the likelihood that a company enters a high maturity stage on one indicator alone if it follows an outlier growth trajectory. You can access the Portfolio Alignment Framework on our website.