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

From HubSpot
Statistic in SaaS & Tech Growth Strategy

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

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts

Internet sales strategies are the only sales method to see a decline in CAC, dropping from $0.54 to $0.42 between 2014 and 2015

Analysed by contract value, field sales are primarily evident for companies with median deals over $25K. Inside sales strategies are most popular for companies with $1K-$25K median deal sizes

55% of SaaS companies rate Customer Retention as the key metric to measure

High-growth companies generate 60% fewer sales opportunities than low-growth companies

If you are charging $500 per month, you can afford to spend up to 12x that amount (i.e. $6,000) on acquiring a new customer

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

To establish a revenue or lead-commitment based on your funnel metrics and revenue-growth goals, work backward from the gross revenue amount that marketing is responsible for generating (generally around 40%)

Between the SMB and Enterprise customer types, the top-quartile performers not only have net-revenue churn that is 14% to 23% percentage less than the average performers but also have net-revenue churn that is negative in an absolute sense

56% treat “Existing Customer Renewals” as high priority

More SaaS & Tech Growth Strategy Stats

The median TTM revenue growth rate + adj. EBITDA margin for publicly traded SaaS companies was ~37%, implying that just under one half met or exceed “The Rule of 40%”

The average company gets 16% of new ACV sales from up-sells and expansions, though companies with revenue between $10MM-$40MM are relying more heavily on up-sell and expansions

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

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

The fastest growing SaaS companies raise an average of $9.5M in Series A funding

General Dynamics is a market leader in the aerospace and defense industry. In 2018, a total of 105,600 people were working at General Dynamics.

In 2019, spending on IT services is expected to amount to 1,016 billion U.S. dollars worldwide

It’s common for startups to grow rapidly, doubling or tripling in size year over year, until they hit $5M in ARR

Because of the losses in the early days, which get bigger the more successful the company is at acquiring customers, it is much harder for management and investors to figure out whether a SaaS business is financially viable.

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