Not typical, but possible with the right team/tech/connections. OP said that the local VC scene asks for 1M+ ARR to invest, which led me to think that revenue was lower.

It depends on the quality of revenue. If the few hundred k is very high quality on a rapid growth trajectory vs if it's heavily services based.

Of course unit economics rule in the long run, but in the short term, it's more interesting to look at LTV:CAC.