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

SaaS + Software
Statistic in Growth Strategy

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

HubSpot

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Internet sales-driven companies have a much greater reliance on marketing, with 65% of the median company’s CAC budget devoted to marketing

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

In contrast to these, the median annual churn rate for smaller, private SaaS companies with less than $10M in revenue is 20%

SaaS solutions have the highest security features with 95% security failures due to human error

SAAS companies with >$250K median ACV book nearly 25% of their contracts at 3 years or longer

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

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

In 2017, IBM generated 37.8 billion U.S. dollars in global IT services revenue, making it the largest IT services company in the world in terms of net sales

SaaS companies in the $7.5MM-$15MM range are among the fastest growers

Growth rate accelerates in the expansion stage ($2.5M – $10M ARR)

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As of December 2018, there were total 105,000 employees in Lockheed Martin, as compared to 126,000 employees in 2015.

The very best SaaS businesses have a negative revenue churn rate and will have a Revenue Retention Rate of greater than 100%

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

In 2017, the world invested around 3.4 billion U.S. dollars in small hydropower technologies, down from 3.9 billion U.S. dollars in 2016.

54% treat upselling and add-on sales as high priority

The metrics that matter for each sales funnel, vary from one company to the next depending on the steps involved in the funnel

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

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

Customer’s lifetime value (LTV)= average revenue per user (ARPU) / monthly churn rate

The median SaaS business loses about 10% of its revenue to churn each year and that works out to about 0.83% revenue churn a month

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