Product & GTM
Sales Cycle Length
The average time from first contact with a prospect to closing a deal, a critical factor in startup cash flow planning.
Sales cycle length measures the time from initial prospect engagement to signed contract. Enterprise sales typically take 3-12 months; SMB sales take 1-4 weeks. Longer cycles require more capital to sustain the business while waiting for revenue.
In Practice
The startup's enterprise sales cycle averaged 7 months: 2 months for discovery, 1 month for POC, 2 months for procurement, and 2 months for legal review. This required 18 months of runway to see returns from their first hires.
Why It Matters
Sales cycle length directly impacts capital requirements, hiring plans, and revenue forecasting. Startups that underestimate their sales cycle run out of money before deals close.
VC Beast Take
Enterprise sales cycles are where optimistic revenue projections go to die. The spreadsheet says 3 months; reality says 9. Plan accordingly.
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