This dissertation presents the theory of optimal capability maturity as a function of company size. Optimal capability maturity is presented within the framework of growth stage models, which purports potential crises between stages threaten the success and survival of a company. The first three chapters lay the foundation for analysis that culminates in the proposed Optimal Maturity Model. Research encompasses a series of mini case studies, with data collected via semi-structured interviews. The objective of this research is to create a diagnostic tool for company analysis, as well an aid for small software companies to operate efficiently and to navigate growth risks. / Business Administration/Entrepreneurship