When we looked at the fastest growing SaaS companies in our study (those with a CAGR of over 50%) we found an average Quick Ratio of 3.9.
These SaaS companies averaged $250k in MRR and were only losing around 3.2% of that revenue each month to churn. They are, in other words, exactly the type of SaaS startup that Mamoon looks for when deciding where to invest.
And, as their high Quick Ratio implies, they have a great chance to continue growing quickly and healthfully, and eventually become one of those fabled SaaS companies with a run rate of more than $10 million.
InsightSquaredMedian annual gross dollar churn was 8%, 7%, 6% and 8% in 2016, 2015, 2014 and 2013
Publicly-traded SaaS companies have an average Revenue Per Employee of $200,000
Negative Churn and Expansion Revenue
Less than 20% of new revenue came from existing customers in the form of up-sell and expansion sales