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

From Tomasz Tonguz
Quote in SaaS & Tech Growth Strategy

The Fundraising Market is Stable, Despite Public Market Fluctuations. The dollars in and out of the venture market are relatively constant. LPs are investing into venture capital at a steady, and likely increasing rate. Over the last five years, dollars into the venture industry has remained at or below the 12 year median. 2014 looks to be a bit of a stronger year. VCs are investing at a relatively constant pace and at a relatively constant average dollars per investment. The public market correction in consumer and enterprise stocks in February was real and significant, deflating consumer by 25% and enterprise by 40%+. Many of those companies have rebounded some since the lows, but institutional investors have broadly cycled from growth to value stocks. Valuations may be more varied but total capital invested in startups is constant.

More SaaS + Software Stats

The average Quick Ratio of fastest growing SaaS companies (those with a CAGR of over 50%) is 3.9: generating $3.9 in revenue for every $1 lost to revenue churn

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

In 2017, IBM generated 37.8 billion U.S. dollars in global IT services revenue, making it the largest IT services company in the world in terms of net sales

The 2015 median revenue growth rate was 44%, while the median projected growth rate for 2016 is 48%

The statistic shows the worldwide IT spending on enterprise software from 2009 to 2020.

Improve Your Pricing Schedule And Turn More Profit

SaaS businesses face significant losses in the early years (and often an associated cash flow problem)

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

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

Revenue Churn Rate = (RCR) (MRR at beginning of month – MRR at end of month) – MRR in upgrades during month / MRR at beginning of month

More SaaS & Tech Growth Strategy Stats

SaaS, and other recurring revenue businesses are different because the revenue for the service comes over an extended period of time (the customer lifetime)

General Dynamics is a market leader in the aerospace and defense industry. In 2018, a total of 105,600 people were working at General Dynamics.

High-growth companies are 8X more likely to reach $1 billion in revenues than those growing less than 20%.

Even if a software company is growing at 60% annually, its chances of becoming a multibillion-dollar giant are no better than 50/50

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

It’s essential to have a point of view that puts a stake in the ground and breaks through the clutter.

Gross dollar churn among companies with an internet go-to-market strategy saw a meaningful increase, up from 8% in 2015

If a software company grows at 20% annually, it has a 92% chance of ceasing to exist within a few years

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

For a SaaS business of almost any scale, the valuation impact of better retention is in the tens of millions over time