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

Median annual gross dollar churn was 8%, 7%, 6% and 8% in 2016, 2015, 2014 and 2013

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

51% of large (revenue >$2.5million) SaaS companies use field sales as their primary method of distribution

Is your SaaS business viable?

Achieving a SaaS Quick Ratio of 4 is a good benchmark for young, high-growth companies but the equation changes as those companies reach scale

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

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

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

If the numerator of your quick ratio is growing that means your revenue is growing. It’s important to keep increasing revenue to counter any MRR (Monthly Recurring Revenue) that is lost to churn

Revenue per employee has been steadily increasing in SAAS companies. It serves as a great longitudinal measuring stick to understand the increasing or decreasing efficiency of the business

More SaaS & Tech Growth Strategy Stats

In 2017, the global adoption rate for biotech soybean amounted to 77 percent.

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

Revenue Renewal Rate= (MRR up for the renewal at beginning of month- MRR not renewed at the end of month)/ MRR up for renewal at beginning of month)

The very best SAAS business has a negative churn rate and will have a Dollar Retention Rate of greater than 100%

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

Women in western countries use the internet 17 percent more than their male counterparts

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

Smaller SAAS companies reported more frequent use of third-party providers as their primary application delivery method, while the largest companies were more likely to use self-managed servers

Sony’s PlayStation brand had accumulated approximately 38.57 million fans on the social network

The median monthly revenue churn for large SaaS companies is 0.75%, translating into an annual revenue churn rate of 10%