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 + Software Stats

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

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

When determining Sales Capacity, “it’s worth noting that some percentage of new sales hires won’t meet expectations, so that should be taken into consideration when setting hiring goals. Typically we have seen failure rates around 25-30% for field sales reps, but this varies by company. The failure rate is lower for inside sales reps. can be counted as half of a productive rep”

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

At a 35% CAGR, it takes 10 years for a SaaS company to grow from $5M to $100M in ARR

The average company gets 16% of new ACV sales from up-sells and expansions, though companies with revenue between $10MM-$40MM are relying more heavily on up-sell and expansions

As with unit churn, companies with longer contracts (2+ years) tend to report lower annual dollar churn

Analyzed 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

The best SAAS businesses have a LTV to CAC ratio that is higher than 3, sometimes as high as 7 or 8

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

More Growth Strategy Stats

At Twitter, 10 percent of tech roles are staffed by women

Our experiences with SaaS startups indicate that they usually start with a couple of lead generation programs such as Pay Per Click Google Ad-words, radio ads, etc

Sony’s PlayStation brand had accumulated approximately 38.57 million fans on the social network

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

After $10M in ARR, the median growth rate slows to just under 50%

In all SaaS businesses there will likely come a moment where they realize that not all customers are created equal

Best-in-class SaaS companies achieve 5-7% annual revenue churn – equivalent to a loss of $1 out of every $200 each month

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

Internet Sales strategies have a significantly lower CAC of just $0.42

High-growth companies offer a return to shareholders 5 times greater than medium-growth companies