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

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

In 2017, IBM generated 37.8 billion U.S. dollars in global IT services revenue, making it the largest IT services company in the world in terms of net sales

Three uses for the SaaS Guidelines

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

High-growth companies are 8X more likely to reach $1 billion in revenues than those growing less than 20%.

26% of SAAS companies with at least $15MM in GAAP revenue had a revenue growth rate + EBITDA margin of 40% or higher.

Less than 20% of new revenue came from existing customers in the form of up-sell and expansion sales

Software and online services are in a period of dizzying growth

The metrics that matter for each sales funnel, vary from one company to the next depending on the steps involved in the funnel

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

More Growth Strategy Stats

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

Since churn is so important, wouldn’t it be useful if we could predict in advance which customers were most likely to churn?

As companies scale their growth engines, a slightly-above-average churn rate becomes harder and harder to offset with net new revenue growth, especially when the goal is to outpace it by 4x

A University of Texas study showed that women ask for $7,000 less than their male counterparts in job interviews

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

The average company booking professional services revenue on new deals is equivalent to 16% of the first year subscription value. Professional services margins are approximately 22%

The median Customer Acquisition Cost (CAC) for upsells is just $0.28 per $1, less than a quarter of the $1.18 spent to acquire $1 of revenue from a new customer

in 2016, women-led companies received $1.46 billion in investments from venture capitalists. Male-led companies, on the other hand, received $58.2 billion

In 2017, Foxconn Technology Group achieved revenue of 158.15 billion U.S. dollars.