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

From HubSpot
Statistic in SaaS & Tech Growth Strategy

•PLG companies use product to drive user acquisition, expansion and retention

•PLG products are extremely sticky -people log in regularly and users share the products with colleagues and friends

•These businesses tend to boast amazing NPS scores

•The virality of user adoption and significant goodwill built with users enables PLG business to successfully (and efficiently) accelerate growth via cross-sell / upsell over time

More SaaS + Software Stats

The average Quick Ratio of fastest growing SaaS companies (those with a CAGR of over 50%) is 3.9: generating $3.9 in revenue for every $1 lost to revenue churn

Even if a software company is growing at 60% annually, its chances of becoming a multibillion-dollar giant are no better than 50/50

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

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.

The median cost for a SaaS company to acquire a dollar of new customer revenue is $1.18

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

The very best SAAS companies keep monthly revenue churn at around 0.58%, that’s only about 7% revenue churn a year

The median annual unit churn for SAAS companies was 10% in 2016

SaaS IPOs have more than doubled over the last 12 years

How To Make Pricing A Constant Process In Your Organization

More SaaS & Tech Growth Strategy Stats

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

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

More than 1/2 of SAAS companies increased their spending on customer retention last year

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

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

56% treat “Existing Customer Renewals” as high priority

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

Getting paid in advance is really smart idea if you can do it without impacting bookings, as it can provide the cash flow that you need to cover your cash problem

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

The best SAAS businesses have a LTV to CAC ratio that is higher than 3, sometimes as high as 7 or 8