Statistic Info

When we looked at the fastest growing SaaS companies in our study (those with a CAGR of over 50%) we found an average Quick Ratio of 3.9.

These SaaS companies averaged $250k in MRR and were only losing around 3.2% of that revenue each month to churn. They are, in other words, exactly the type of SaaS startup that Mamoon looks for when deciding where to invest.

And, as their high Quick Ratio implies, they have a great chance to continue growing quickly and healthfully, and eventually become one of those fabled SaaS companies with a run rate of more than $10 million.

However, once we started digging deeper, the story became a little more complicated (and more interesting).

InsightSquared

More SaaS + Software Stats

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

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

Software and online services are in a period of dizzying growth

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

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

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

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

SAAS companies that are focused mainly on enterprise sales have higher levels of professional services

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

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

More Growth Strategy Stats

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

In 2017, the global adoption rate for biotech soybean amounted to 77 percent.

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

54% treat upselling and add-on sales as high priority

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

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

Moving from $1.5 million with an eye towards $10 million in ARR is a tough a task and will take an excellent VP of sales to get you there

Internet sales-driven companies have a much greater reliance on marketing, with 65% of the median company’s CAC budget devoted to marketing

The fastest growing SaaS companies scale their organizations rapidly, growing their teams by an average of 56% each year

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