At a 35% CAGR, it takes 10 years for a SaaS company to grow from $5M to $100M in ARR

Statistic Info

If a company were to maintain an aggressive 75% CAGR, it would take just over 5 years to hit that coveted milestone

Spend peaks during the expansion stage when companies rapidly build out their sales & lead generation teams

More SaaS + Software Stats

The top 50% of the fastest growing SaaS businesses generate much higher upsells than their competitors. The larger the business, the greater the impact of upselling

86% of SaaS businesses treat “New Customer Acquisition” as their highest growth priority, both in terms of executive support and funding available

The fastest growing SaaS companies scale their organizations rapidly, growing their teams by an average of 56% each year

SaaS businesses face significant losses in the early years (and often an associated cash flow problem)

Companies with longer contracts (2+ years) reported the lowest annual unit churn

When venture capitalists participate in seed rounds, the average round size is 3x larger

Best-in-class SaaS companies achieve 5-7% annual revenue churn – equivalent to a loss of $1 out of every $200 each month

It’s 9x cheaper to retain existing customers than acquire new customers: costing $0.13 to acquire any additional dollar of revenue

After $10M in ARR, the median growth rate slows to just under 50%

The 2015 median revenue growth rate was 44%, while the median projected growth rate for 2016 is 48%

More Growth Strategy Stats

SAAS companies invest between 80% and 120% of their revenue in sales and marketing in the first 5 years of their existence

SAAS companies need to track the number of visitors, trials and closed deals; And also track the conversion rates, with the goal of improving those over time

High-growth companies are 8X more likely to reach $1 billion in revenues than those growing less than 20%.

At Facebook, 15 percent of tech roles are staffed by women

In 2017, Foxconn Technology Group achieved revenue of 158.15 billion U.S. dollars.

Negative Churn and Expansion Revenue

Gross dollar churn among companies with an internet go-to-market strategy saw a meaningful increase, up from 8% in 2015

The largest SaaS companies (>$75million yearly revenue) attribute 2.5x as much new revenue to upselling than the smallest SaaS companies (<$1.25million): 28% versus 11%

Only 8% of large companies use internet sales strategies. The proportion of companies relying on internet sales increases as company size decreases

It’s 4x cheaper to upsell existing customers than acquire new customers: costing just $0.28 to acquire an additional dollar of revenue