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

InsightSquared
Growth Strategy🕑 Reading Time: 0 Minutes

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.

What Is A Fractional CMO

Discover the benefits of hiring a Fractional CMO for your SaaS tech company. Learn how this flexible, high-level marketing executive can provide strategic leadership without the long-term commitment and costs of a full-time CMO.

Valuing a New Software Business: A Comprehensive Guide

Explore essential strategies and unique challenges in valuing a new software business. Learn how accurate valuation impacts investment, growth, and strategic decisions, and why it’s crucial for founders and investors in the ever-evolving software industry.