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

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.

SaaS companies in the $7.5MM-$15MM range are among the fastest growers

More than two thirds of SAAS companies experienced annual churn rates of 5% or higher

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

The median SaaS business loses about 10% of its revenue to churn each year and that works out to about 0.83% revenue churn a month

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

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

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; which may have a dramatically negative effect on your company’s growth. Source: Mckinsey

SaaS IPOs have more than doubled over the last 12 years

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

More Growth Strategy Stats

The average SaaS company spends just 6 hours determining their pricing strategy

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

Customer Segmentation analysis will help point out which are your most profitable segments

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

Publicly-traded SaaS companies have an average Revenue Per Employee of $200,000

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

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

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

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

Companies that spend more on sales and marketing (as a % of revenue) generally grew at a faster rate than those that spent less