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

SaaS + Software
Quote in Growth Strategy

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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.

Tomasz Tonguz

More SaaS + Software Stats

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

73% of organizations indicated nearly all their apps will be SaaS by 2021

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

Customer’s lifetime value (LTV)= average revenue per user (ARPU) / monthly churn rate

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; this will become a major drag on growth

Software and online services are in a period of dizzying growth

Achieving a SaaS Quick Ratio of 4 is a good benchmark for young, high-growth companies but the equation changes as those companies reach scale

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”

It’s 4x cheaper to upsell existing customers than acquire new customers: costing just $0.28 to acquire an additional dollar of revenue

How Often Should The Pricing Committee Be Meeting And Making Changes?

More Growth Strategy Stats

In 2017, Foxconn Technology Group achieved revenue of 158.15 billion U.S. dollars.

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

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

How Often Should The Pricing Committee Be Meeting And Making Changes?

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

56% treat “Existing Customer Renewals” as high priority

73% of organizations indicated nearly all their apps will be SaaS by 2021

How To Make Pricing A Constant Process In Your Organization

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; which may have a dramatically negative effect on your company’s growth. Source: Mckinsey

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business

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