SaaS IPOs have more than doubled over the last 12 years

Quote Info

1. The number of SaaS IPOs has more than doubled in the past 12 years. t
2. The number of rounds of financing each company raises before IPO has nearly doubled from 2.5 to 4.5, i.e. Series B/C to Series D/E. These figures exclude seeds, which I’ve defined as rounds less than $1.5M.
3. The total amount of cash raised before IPO has doubled from the ‘98 cohort, adjusted for inflation.
4. The median round sizes across the life of the company have remained relatively constant.
5. IPO offerings have increased by about 40% in size

More SaaS + Software Stats

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

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

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.

A 2017 SaaS Capital survey showed that young companies actually have higher retention rates than more mature SaaS businesses

The median average contract length is 1.3 years and the average billing term is seven months in advance in 2016. Comparable to 2015, with average contract length shortening from 1.5 to 1.3 years and average billing period increasing by one month from 2015 to 7 months

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

Unlike many other industries, if a software company grows at only 20%, it has a 92% chance of ceasing to exist within a few years

Net-revenue churn improves with larger Average Contract Value (ACV), likely due to more structural churn among SMB customers and higher switching costs associated with larger contracts

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

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 Growth Strategy Stats

A 2017 SaaS Capital survey showed that young companies actually have higher retention rates than more mature SaaS businesses

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.

General Dynamics is a market leader in the aerospace and defense industry. In 2018, a total of 105,600 people were working at General Dynamics.

The median SaaS business generates 16% of its new Annual Contract Value (ACV) from upselling to existing customers

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

47% of millennials want to work at diverse companies, according to a recent study.

Internet Sales strategies have a significantly lower CAC of just $0.42

56% treat “Existing Customer Renewals” as high priority

The median annual contract value (ACV) was $25K, $21K, $21K, $20K in 2016, 2015, 2014 and 2013

If a software company grows at 20% annually, it has a 92% chance of ceasing to exist within a few years