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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%.

The median SaaS business loses about 10% of its revenue to churn each year and that works out to about 0.83% revenue churn a month

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

Negative Churn and Expansion Revenue

Between the SMB and Enterprise customer types, the top-quartile performers not only have net-revenue churn that is 14% to 23% percentage less than the average performers but also have net-revenue churn that is negative in an absolute sense

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

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

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

High-growth companies generate 60% fewer sales opportunities than low-growth companies

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

More Growth Strategy Stats

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

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts. Source: ForEntrepreneurs

47% of millennials want to work at diverse companies, according to a recent study.

The median annual unit churn for SAAS companies was 10% in 2016

Analysed 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

51% of large (revenue >$2.5million) SaaS companies use field sales as their primary method of distribution

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

80% of venture capital investments take place in the enterprise

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

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