Statistic Info

When we looked at the fastest growing SaaS companies in our study (those with a CAGR of over 50%) we found an average Quick Ratio of 3.9.

These SaaS companies averaged $250k in MRR and were only losing around 3.2% of that revenue each month to churn. They are, in other words, exactly the type of SaaS startup that Mamoon looks 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.

InsightSquared

More SaaS + Software Stats

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

SAAS companies that are focused mainly on enterprise sales have higher levels of professional services

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

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

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts

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

The average SaaS business generates 16% of its new Annual Contract Value (ACV) from upselling to existing customers

Customer Segmentation analysis will help point out which are your most profitable segments

SAAS companies with >$250K median ACV book nearly 25% of their contracts at 3 years or longer

Improve Your Pricing Schedule And Turn More Profit

More Growth Strategy Stats

Women in western countries use the internet 17 percent more than their male counterparts

Increases in revenue growth rates drive twice as much market-capitalisation gain as margin improvements for companies with less than $4 billion in revenues

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

A University of Texas study showed that women ask for $7,000 less than their male counterparts in job interviews

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

Median annual gross dollar churn was 8%, 7%, 6% and 8% in 2016, 2015, 2014 and 2013

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

Growth rate accelerates in the expansion stage ($2.5M – $10M ARR)

The venture-backed companies that were acquired most often had a 7 percent share of female execs, as opposed to 3 percent at unsuccessful (unacquired) firms

It’s common for startups to grow rapidly, doubling or tripling in size year over year, until they hit $5M in ARR