Statistic Info

The median annual contract size (subscription component only) for the group was $25K per year. These results are somewhat above the previous survey medians of $21K, $21K, $20K in 2015, 2014 and 2013, respectively.

The median average contract length is 1.3 years. The median billing term is seven months in advance. These results are very comparable to 2015, with average contract length shortening from 1.5 to 1.3 years and average billing period increasing one month over 2015 to seven months.

For Entrepreneurs.com

More SaaS + Software Stats

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

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

SaaS businesses face significant losses in the early years (and often an associated cash flow problem)

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

Revenue Churn Rate = (RCR) (MRR at beginning of month – MRR at end of month) – MRR in upgrades during month / MRR at beginning of month

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

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

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

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

The median startup spends 92% of first year revenue on customer acquisition, taking 11-months to payback their Customer Acquisition Cost

More Growth Strategy Stats

Japanese company Hitachi accounted for three percent of the world’s market for diagnostic imaging in 2017.

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

When determining Sales Capacity, “it’s worth noting that some percentage of new sales hires won’t meet expectations, so that should be taken into consideration when setting hiring goals. Typically we have seen failure rates around 25-30% for field sales reps, but this varies by company. The failure rate is lower for inside sales reps. can be counted as half of a productive rep”

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts. Source: ForEntrepreneurs

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)

Customer Acquisition Cost (CAC) = sum of all sales & marketing expenses/ number of new customers added

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

They may forget what you said, but they will never forget how you made them feel.

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