Statistic Info

Cost of Customer Acquisition is About 11 Months’ of Revenue The median startup spends about 92% of first year average contract value on the sale, implying an 11 month payback period on the CAC. An additional months’ revenue is required to upsell a customer and about the same is required to close a renewal.

Tomasz Tonguz

More SaaS + Software Stats

When venture capitalists participate in seed rounds, the average round size is 3x larger

86% of SaaS businesses treat “New Customer Acquisition” as their highest growth priority, both in terms of executive support and funding available

Is your SaaS business viable?

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 top 50% of the fastest growing SaaS businesses generate much higher upsells than their competitors. The larger the business, the greater the impact of upselling

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

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

More than 1/2 of SAAS companies increased their spending on customer retention last year

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

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

More Growth Strategy Stats

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

When venture capitalists participate in seed rounds, the average round size is 3x larger

orecasts suggest that global blockchain technology revenues will experience massive growth in the coming years, with the market expected to climb to over 23.3 billion U.S. dollars in size by 2023.

To generate a single dollar of new customer revenue, Field Sales strategies have an average Customer Acquisition Cost (CAC) of $1.14

Negative Churn and Expansion Revenue

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

Account Churn Rate (ACR) = customers at beginning of month – customers at the end of month / customers at beginning of month

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

The very best SAAS companies keep monthly revenue churn at around 0.58%, that’s only about 7% revenue churn a year

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