For SaaS companies valued at over $1billion, the median amount of financing raised is $206million

From Tomasz Tonguz
Statistic in SaaS & Tech Growth Strategy

The WSJ published a recent chart of the 49 startups with billion dollar valuations. According to their research, there have never been as many privately held companies with such high valuations ever. The absolute number of these massively valuable companies alone is amazing. Ten years ago, most of them would have gone public by now. But what other insights can we tease from the data about these very special businesses?

First, the Billion Dollar Club (BDC) is nearly evenly split between Consumer and Enterprise companies, as the table below shows. I’ve noted the median dollars raised, the median valuation and the valuation efficiency in the table. The valuation efficiency is the valuation divided by the capital raised. This metric tries to answer the question, how much capital did the startup need to raise to achieve that valuation? This is a somewhat flawed metric[1] but I’m going to use it to compare the relative attractiveness of sectors[2].

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More SaaS & Tech Growth Strategy Stats

Negative Churn and Expansion Revenue

Account Churn Rate (ACR) = customers at beginning of month – customers at the end of month / customers at beginning of month

Cloud application services (SaaS) to reach $126 billions by the end of 2021

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A 1% increase in pricing strategy yields an average 11% increase in profit

Publicly-traded SaaS companies have an average Revenue Per Employee of $200,000

The statistic shows the worldwide IT spending on enterprise software from 2009 to 2020.

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