The fastest growing SAAS companies averaged $250k in MRR and were only losing around 3.2% of that revenue each month to churn

Statistic Info

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.

More SaaS & Tech Growth Strategy Stats

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

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

36% of SaaS businesses managed to reduce their revenue churn over the last 12-months

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

Cloud-hosted applications have a 99% uptime

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

56% treat “Existing Customer Renewals” as high priority

26% of SAAS companies with at least $15MM in 2015 GAAP revenue had a revenue growth rate + EBITDA margin of 40% or higher

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