SaaStr

MARCH 15, 2025

It’s live on SaaStr.com itself and you can also access it here and talk to AI Jason about any of 1000s and 1000s of B2B, sales, SaaS, VC, etc. Its practical and relatable for SaaS founders struggling with scaling their sales teams. “Growth and Burn Rates at $1M ARR for 20+ Fast-Growing SaaS Companies.”

AI 258

AI Sales Hiring Scale Compensation 258

Tom Tunguz

JANUARY 4, 2019

How far along was the typical SaaS Series A in 2018? The chart below shows a representative sample of SaaS Series As’ ARR and projected ARR growth rate for 2018. In 4 years, we’ve seen a 4x increase in the median MRR of a Series A SaaS company. The median business was at $1.8M in ARR and growing at 250%.

Benchmarks 260

Benchmarks Startup SaaS Data Analysis 260

Practical Advice on SaaS marketing

JULY 1, 2020

Understanding your customers is something SaaS companies can do especially well Lots of software-as-a-service (SaaS) companies should be able to easily gather and share information like that. A SaaS HR systems vendor, for example, can find in the system useful information on sick days, turnover, or time-to-fill open positions.

Benchmarks 161

Benchmarks SaaS Cloud Metrics 161

SaaStr

DECEMBER 20, 2024

Former Head of Revenue at BILL and HubSpot Americas leader Michelle Benfer recently joined us on a SaaStr Workshop Wednesday share her insights on one of the most critical roles in any SaaS organization: the frontline sales manager. Percentage of reps at different attainment levels (>100%, 90-100%, etc.) ” The bottom line?

Sales Hiring 260

Sales Hiring Scale Underperforming Technical Team Sales 260

Clouded Judgement

AUGUST 25, 2023

There’s a lot of info to digest, so in the sections below I’ll try and pull out the relevant financial information and benchmark it against current cloud businesses. ” Benchmark Data The data shown below depicts how the Klaviyo data compares to the operating metrics of current public SaaS businesses.

Benchmarks 246

Benchmarks Artificial Intelligence Data Software Review 246

SaaStr

NOVEMBER 4, 2021

The “Rule of 40” is one of the most commonly cited valuation benchmarks in SaaS for both public and private companies. The SaaS “Rule of 40” has gained popularity due to its simplicity, requiring only two common financial metrics to be added together. What Is The SaaS “Rule of 40”?

SaaS 317

SaaS Technical Review Benchmarks Azure 317

SaaStr

FEBRUARY 25, 2025

Unparalleled Networking Opportunities SaaStr Annual brings together thousands of SaaS, Cloud and AI executives, founders, VCs, and industry leaders under one roof across our 40+ acre campus, May 13-15 in SF Bay! Finding and recruiting top talent is consistently ranked as one of the biggest challenges for growing SaaS companies.

Sales Recruiting 195

Sales Recruiting Scale CTO Hire Sales Hiring 195

SaaStr

DECEMBER 13, 2023

Dave Kellogg, EIR at Balderton Capital and 25-year C-level veteran, shares the top 14 signs that you have a SaaS metrics problem, the five reasons those symptoms exist, and a SaaS metrics maturity model with five layers to help you move the needle at every stage. The 15 Types of Misuse and Abuse of SaaS Metrics #1: Bludgeoning.

Metrics 339

Metrics Sales Hiring Benchmarks SaaS 339

SaaStr

SEPTEMBER 2, 2023

So there’s a question I’ve had for some time in SaaS: does high NRR really equal higher growth? Yes, most of the best in SaaS have high NRR, at least once they are public. SaaS Capital asked this question among some other great ones of 1,500 private SaaS companies here. This wasn’t obvious to me.

Startup 293

Startup SaaS SMB Banking 293

Tom Tunguz

SEPTEMBER 16, 2017

How much should a SaaS startup invest in sales and marketing at different stages of the business? This is a very nuanced question, but benchmarks do provide some guidance for what is reasonable. Another way to answer this question is to use at Pacific Crest’s SaaS survey to build a bottoms up model. You can find mine here.

Investment 274

Investment Startup Marketing Sales 274

FastSpring

APRIL 26, 2022

Last week, I canceled an annual SaaS subscription (I had three weeks left until renewal). In the language of SaaS, I churned. In part one, we cover benchmarks and common churn formulas. In part two, we’ll cover five churn-prevention strategies that have been successful in other SaaS businesses. Table of Contents.

Benchmarks 147

Benchmarks Churn Payments SaaS Payments 147

Tom Tunguz

SEPTEMBER 1, 2021

The summary statistics of the business reveal a company with a fairly high contract value of $98,600 and the largest customers generating 72% of revenue, putting the business squarely in the enterprise segment of SaaS companies. Amplitude has demonstrated improving efficiency characteristics across three key areas.

Metrics 285

Metrics Benchmarks PayPal Enterprise 285

SaaStr

JANUARY 26, 2024

So Vendr has their latest SaaS Buyer Report out here. But still … across all the SaaS vendors that Vendr tracks, how long do deals take to close? A related post here: Dear SaaStr: What’s a Good Benchmark for B2B Sales Cycles? The post How Long Does It Take to Close an “Average” Deal in SaaS?

SaaS 301

SaaS Benchmarks B2B Metrics 301

SaaStr

NOVEMBER 5, 2021

The “Magic Number” is one of those metrics in SaaS that has always sort of vexxed me. Critical to adjust Magic Number for SaaS businesses with lower gross margins. SaaS businesses with hardware or telecom or other components that have true fixed costs need a higher Magic Number to cover those costs.

Scale 293

Scale SaaS Acquisition Benchmarks 293

The Angel VC

JANUARY 10, 2017

In less earth shattering news, the fact that it's 2017 also means that my "SaaS Funding in 2016" napkin needs an update. As a reminder, in the original post I tried to give a "back of a napkin" answer to this question: What does it take to raise capital, in SaaS, in 2016? So, what does it take to raise capital, in SaaS, in early 2017?

SaaS 262

SaaS Marketplace as a Service Machine Learning Artificial Intelligence 262

SaaStr

APRIL 27, 2023

I was curious the other day how many of the recent Cloud and SaaS IPOs had founders that were equal co-founders from an equity perspective. Overall, I learned a lot from this exercise: Only 4 of the top recent Cloud/SaaS IPOs had equal or equal-ish co-founders in terms of equity. Some interesting benchmarks here for you to think about.

SaaS 321

SaaS Cloud Benchmarks Data 321

SaaStr

MAY 23, 2024

So Emergence Capital put together a great report here on B2B startups, “Beyond Benchmarks 2024” , with a ton of great data across 664 software startups. More on that here: But top quartile is still a great benchmark to compare and learn from your peers: From $1m-$5m ARR, top quartile startups are growing 100% still.

Startup 341

Startup Benchmarks B2B Pricing 341

Tom Tunguz

NOVEMBER 3, 2021

Before, most investors used forward ARR multiples to value companies, but recently, the 100x multiple seems to be a benchmark for SaaS companies raising rounds. Here are the estimated ARR multiples for public SaaS companies. Regardless, the 100x ARR multiple seems to be a benchmark in the industry today.

Benchmarks 362

Benchmarks Startup Metrics Enterprise 362

SaaStr

MARCH 12, 2025

About Dave Kellogg Dave Kellogg brings a rare combination of marketing and executive leadership experience to his analysis of SaaS businesses. You assembled a talented team, built an amazing product, and established a growing SaaS business. But here’s the reality check: this is completely normal in SaaS.

Sales Hiring 202

Sales Hiring Marketing Technical Review Underperforming Technical Team 202

SaaStr

SEPTEMBER 5, 2023

So ever since I started in SaaS, I’ve been trying to answer a basic question: how quickly do the best take off and get to $10m ARR? years back in the day, but SaaS was much smaller then. Is It Now “Triple, Triple, Triple, Double, Double, Double” — T3D3 — For Top Tier SaaS Startups?

SaaS 284

SaaS Benchmarks Startup Investment 284

Kellblog

JULY 29, 2021

The purpose of this post is to embed the video recording of my recent appearance on Monday Night Metrics with Ray Rike of RevOps^2 and Ben Murray , also known by the sobriquet, The SaaS CFO.

Benchmarks 134

Benchmarks B2B Metrics SaaS 134

FastSpring

OCTOBER 25, 2023

Q4 sales numbers usually outperform the rest of the year thanks to year-end holidays and their associated shopping cycles — but how much does that trend carry over into software and SaaS sales? We’ve analyzed aggregate sales data to give you insights into just how important Q4 can be for your software, SaaS, or other digital goods business.

SaaS Payments 159

SaaS Payments Payment Solutions Software Review Merchant Services 159

Tom Tunguz

OCTOBER 28, 2017

Normally, accounting changes are not that interesting, but ASC 606 will change several of the key attributes and benchmarks SaaS startups use. Net income will increase markedly each quarter and may push many SaaS companies from a median -10% net income to a figure much closer to zero. I am not an accountant.

Revenue 223

Revenue Benchmarks SaaS Finance 223

User Pilot

JUNE 27, 2024

Learn more about industry benchmarks in our latest SaaS Product Metrics Report. Customer activation rate is crucial for SaaS companies as it impacts all other success metrics, like revenue. Activation rate benchmarks for various industries in 2024 range from 54.8% User activation rate benchmarks in 2024.

Benchmarks 105

Benchmarks SaaS Social Media Onboarding 105

Tom Tunguz

JUNE 25, 2020

Yesterday, we shared the Top 10 Learnings from the 2020 Redpoint GTM Survey at SaaS Office Hours. It contains data on go to market team structure, performance by sales function, marketing spend benchmarks, and customer success priorities. The presentation is embedded below. The deck in embedded above and is also linked here.

Headcount 364

Headcount Scale Benchmarks Retention 364

User Pilot

SEPTEMBER 2, 2024

Userpilot’s SaaS Product Metrics Benchmark Report has found that compared to other industries, healthcare SaaS companies perform lower across most of the 6 metrics we studied. Companies by industry analyzed in our Product Metrics Benchmark Report 2024. Healthcare Product Metrics Benchmarks: customer activation rate.

Healthcare 105

Healthcare Benchmarks Metrics Onboarding 105

SaaStr

SEPTEMBER 19, 2019

I was curious the other day how many of the recent Cloud and SaaS IPOs had founders that were equal co-founders from an equity perspective. Overall, I learned a lot from this exercise: Only 3 of the top recent Cloud/SaaS IPOs had equal co-founders in terms of equity. Some interesting benchmarks here for you to think about.

SaaS 255

SaaS Cloud Benchmarks Development 255

SaaStr

MAY 25, 2023

So ChartMogul pulled together some nice data and statistics across its 2,100 SaaS customers and users for its 2023 Benchmarks report here. My favorite hart is this one, that tracks how Top Quartile SaaS companies have grown the past few years: What it shows it what we all sort of know, but puts specifics on. Like a rock.

SaaS 246

SaaS Benchmarks Startup Pricing 246

Tom Tunguz

MARCH 18, 2019

Let’s first look at one of the key SaaS metrics: the dollar attention. The average customer is worth about $10,000. Let’s compare PagerDuty to other recent software IPOs for companies selling to engineers at their IPO. This is the value of a cohort a year later inclusive of churn and expansion.

Metrics 222

Metrics Benchmarks Software Review Engineering 222

SaaStr

DECEMBER 6, 2019

Q: How many employees does a SaaS company have at 100M ARR? Tomasz Tuguz did a great analysis here last year on public SaaS companies: Revenue per Employee Benchmarks of Billion Dollar Companies. “[in What’s changed since a lot of those companies IPO’d is most SaaS companies raising $370m+ before IPO’ing (!).

SaaS 219

SaaS Benchmarks Revenue Investment 219

User Pilot

JANUARY 31, 2023

Wondering what customer satisfaction benchmarking is in SaaS and how your business compares to other SaaS companies? In this article, we go in-depth about customer satisfaction benchmarks and how you can measure and improve it. In the SaaS industry, the NPS benchmark is around 40. Here are its benefits.

Benchmarks 98

Benchmarks SaaS Retention Metrics 98

User Pilot

JULY 14, 2024

That’s one of the questions about user activation rates that we explore in our Product Metrics Benchmark Report 2024. You will also learn how to increase it for your SaaS product! Companies analyzed in the Product Metrics Benchmark Report by industry. Userpilot’s SaaS Product Metrics Benchmark Report 2024.

Benchmarks 105

Benchmarks Scale Onboarding Metrics 105

Clouded Judgement

JUNE 19, 2024

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. My hope is that this analysis can provide startup entrepreneurs with a framework for how to manage their businesses around SaaS metrics (e.g., net retention and CAC payback). Subscribe now What Happened in Q1?

Cloud 318

Cloud GCP(Google Cloud Platform) Software Azure 318

SaaStr

MAY 13, 2021

429: In this episode, ProfitWell Founder & CEO Patrick Campbell shares benchmarks from over 23,000 companies and offers a helpful framework to re-evaluate your retention strategy and increase your CLV (Customer Lifetime Value) between 10 and 60%. Patrick Campbell.

Retention 223

Retention Subscription Payment Features Customer Lifetime Value 223

BetterCloud

JANUARY 3, 2025

SaaS has revolutionized how we work, but let’s be honest, managing all those subscriptions can feel like juggling flaming torches. This blog is your guide to conquering SaaS chaos. Whether you’re a seasoned sysadmin or just starting to dip your toes into the SaaS world, we’ve got you covered.

Management 52

Management SaaS compliance Benchmarks 52

User Pilot

JULY 18, 2024

MarTech companies had the lowest onboarding c completion rates of all the industries we studied for our SaaS Product Metrics Benchmark Report. We also show you how you can improve the key success metrics for your MarTech SaaS. Companies by industry analyzed in our Product Metrics Benchmark Report 2024. Including MarTech.

Benchmarks 102

Benchmarks Metrics Onboarding Retention 102

SaaStr

APRIL 4, 2025

Why It Matters : Business users waste hours navigating complex SaaS UIs. Their performance benchmarks showing 10x query throughput compared to self-hosted options were eye-opening. Plexe’s command line approach allows power users to execute complex operations in seconds rather than minutes. The Numbers : Processing 1.2B

AI Search 175

AI Search AI Startup Scale 175