The fastest growing 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 you should look 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.

SaaS & Tech Growth Strategy Articles

• Evaluating Your Software Brand Positioning Through SWOT Analysis
  It's Strategic Planning month here at Insivia, so we're continuing our conversation about planning for next year.
• What Is MRR
  The simple answer is that MRR is your Monthly Recurring Revenue and one of the key metrics that SaaS companies use to evaluate success.
• SaaS Sales Funnel
  The SaaS Sales FunnelWe're breaking down how to build a funnel for maximum growth.Every step in the funnel is a chance to win or lose customers.So, let's explore the SaaS Customer Journey from prospect to evangelist and see how to improve top-line revenue through acquisition as well as retention; and ultimately evangelism. TABLE OF CONTENTSOverviewPT.1  Focus […]
• Sharing Your Vision With Your Customers
  How can you share your vision with your customers? Andy shares his recommendations on bridging the customer gap.
• How Technology Companies Can Leverage Focused Niche Markets
  How B2B SaaS Companies Can Leverage Focused Niche MarketingAs the world advances more and more toward consistent innovation, B2B SaaS companies are finding it harder to survive in the market. The market is so competitive that technology companies are at each other's throats all the time for survival. It's all about 'survival of the fittest. […]
• Blue Ocean Strategy
  Today, Andy shares with us what a "Blue Ocean" strategy is and how to implement it in your business and marketing strategies. Blue Ocean StrategyA Red Ocean is an ocean where there's a lot of competition, a lot of people fighting and a lot of blood in the water, which makes it really hard to sell […]
• What Type of Media is Right for Your Target Audience?
  Choosing the most suitable media type is necessary if you want to communicate your message to your technical audiences effectively. Technical audiences require a more technically detailed approach when your IT company is conveying its message to them. Use these media types to ensure that your technical audience is getting the insight you aim to […]
• Make Tactical Goals Part of Your Vision
  When it comes to your business, you're probably planning a lot of different things - your next marketing move, your newest product, or making an acquistion. But not many businesses spend time planning out how to achieve goals.In fact, a lot of people leave this critical step out during their visions.After all, when most people […]
• 10 Reasons Your Customers Are Churning
  Churn is a death knell for any business. Make sure you aren't making any of these common reasons your customers are churning.

SaaS + Software Stats

• SaaS organizations are now operating in over 100 countries
• 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
• 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
• SAAS companies with >$250K median ACV book nearly 25% of their contracts at 3 years or longer
• If a software company grows at 20% annually, it has a 92% chance of ceasing to exist within a few years
• In all SaaS businesses there will likely come a moment where they realize that not all customers are created equal
• The metrics that matter for each sales funnel, vary from one company to the next depending on the steps involved in the funnel
• High-growth companies generate 60% fewer sales opportunities than low-growth companies
• The largest SaaS companies (>$75million yearly revenue) attribute 2.5x as much new revenue to upselling than the smallest SaaS companies (<$1.25million): 28% versus 11%

SaaS & Tech Growth Strategy Stats

• The average SaaS company spends just 6 hours determining their pricing strategy
• Analysed by contract value, field sales are primarily evident for companies with median deals over $25K. Inside sales strategies are most popular for companies with $1K-$25K median deal sizes
• 54% treat upselling and add-on sales as high priority
• 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
• The largest SaaS companies (>$75million yearly revenue) attribute 2.5x as much new revenue to upselling than the smallest SaaS companies (<$1.25million): 28% versus 11%
• Gross dollar churn among companies with an internet go-to-market strategy saw a meaningful increase, up from 8% in 2015
• The median TTM revenue growth rate + adj. EBITDA margin for publicly traded SaaS companies was ~37%, implying that just under one half met or exceed “The Rule of 40%”
• The venture-backed companies that were acquired most often had a 7 percent share of female execs, as opposed to 3 percent at unsuccessful (unacquired) firms
• 26% of SAAS companies with at least $15MM in 2015 GAAP revenue had a revenue growth rate + EBITDA margin of 40% or higher.