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How Quickly Does Headcount Scale in the Fastest Growing Software Businesses?

Tom Tunguz

Above, I’ve charted the headcount growth rate for 10 of the fastest growing software companies in recent history. I’ve normalized the years for when all the businesses were roughly at the same headcount - fewer than 50 people. This is a proxy for when the business established product market fit.

Headcount 187
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The Hardest Part About SaaS Companies, At Each Stage

SaaStr

Enough to pay some salaries and AWS bills, but it’s not that much. You start making up for it in volume — with headcount. Yes, you now know how to make customers successful and happy now. But it is so slow. You have 2,000 customers now. But at $10/mo, that’s still just $20,000 a month.

SaaS 351
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5 Interesting Learnings from Snowflake at $2.4 Billion in ARR

SaaStr

AWS is seeing this, and so is Snowflake. Everyone is basically doing more with not much more headcount (see next point). #4. Growing Headcount, But Much More Slowly That Revenue. Headcount is up 29% year-over-year, but revenue is up 50%. Not none, just less. Growing remains jaw-dropping at 50% at $2.4

Headcount 246
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Dear SaaStr: What is the Hardest Part About Starting a SaaS Company?

SaaStr

Enough to pay some salaries and AWS bills, but it’s not that much. You start making up for it in volume — with headcount. Yes, you now know how to make customers successful and happy now. But it is so slow. You have 2,000 customers now. But at $10/mo, that’s still just $20,000 a month.

Headcount 246
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Are You Getting More Competitive, Or Less Competitive? Hitting the Plan Might Not Be Enough

SaaStr

DigitalOcean is growing more slowly than its mega competitors Azure, AWS, etc. If nothing else, you can pretty reliability track headcount growth on LinkedIn). That’s a big, big gap. But BigCommerce is still worth a very impressive $4B. More here. #2. But it’s still worth billions, in a very large market. #3.

Azure 245
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The 9 best tools for your early-stage startup tech stack

Intercom, Inc.

This is especially important for small teams, where you need to operate at a scale far beyond your headcount (without burning out your team by working around the clock). Using Brex also saves time for your finance team (or, depending on headcount, your finance person ??) AWS – Cloud computing. Apply now.

Scale 163
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Why Self-Service and Product-Led Growth Won’t Replace Sales [Opinion]

Sales Hacker

Sales still makes up 25% of their headcount on average. Sales and business development headcount increased by 45% year-on-year versus just 33% in non-sales roles (the full data is available here ). Flash forward to 2019, and the company grew sales headcount by 66% year-on-year, which is twice the rate of other roles (31%).