Read on Twitter
How does your startups revenue growth stack up?!
Ran across some interesting charts from @SaaSCapital the other day that breakdown benchmark growth rates of thousands of private bootstrapped and VC-backed companies.
TLDR - VC-backed grow WAY faster
Check them out below
https://abs.twimg.com/emoji/v2/... draggable="false" alt="đđź" title="RĂźckhand Zeigefinger nach unten (mittelheller Hautton)" aria-label="Emoji: RĂźckhand Zeigefinger nach unten (mittelheller Hautton)">
Ran across some interesting charts from @SaaSCapital the other day that breakdown benchmark growth rates of thousands of private bootstrapped and VC-backed companies.
TLDR - VC-backed grow WAY faster
Check them out below
Chart 1 is pretty simple but it breaks down average and median growth rates of SaaS startups at different revenue levels
Itâs rare to get this type and breadth of data from private companies
These are good benchmarks for planning growth and setting targets
Itâs rare to get this type and breadth of data from private companies
These are good benchmarks for planning growth and setting targets
Chart 2 takes some same growth metrics and breaks them out further, allowing you to see what the benchmark for great performance looks like
If youâre SaaS is doing $1-3M in ARR you need be growing at 91% or more annually to be in the top quartile
If youâre SaaS is doing $1-3M in ARR you need be growing at 91% or more annually to be in the top quartile
And hereâs why world class performance looks like - if youâre hitting these annual ARR growth rates your startup is in the top 10%
Hereâs where it starts to get interesting
Chart 4 breaks down growth rates of VC-backed vs bootstrapped SaaS startups
At almost all stages, VC backed startups grow at more than 2X the rate of bootstrapped startups
Compoundinghttps://abs.twimg.com/emoji/v2/... draggable="false" alt="đ" title="Tabelle mit Aufwärtstrend" aria-label="Emoji: Tabelle mit Aufwärtstrend">
The gap starts to close at scale though
Chart 4 breaks down growth rates of VC-backed vs bootstrapped SaaS startups
At almost all stages, VC backed startups grow at more than 2X the rate of bootstrapped startups
Compounding
The gap starts to close at scale though
The gap starts to close at scale though" title="Hereâs where it starts to get interesting Chart 4 breaks down growth rates of VC-backed vs bootstrapped SaaS startupsAt almost all stages, VC backed startups grow at more than 2X the rate of bootstrapped startups Compounding https://abs.twimg.com/emoji/v2/... draggable="false" alt="đ" title="Tabelle mit Aufwärtstrend" aria-label="Emoji: Tabelle mit Aufwärtstrend">The gap starts to close at scale though" class="img-responsive" style="max-width:100%;"/>
Retention is King https://abs.twimg.com/emoji/v2/... draggable="false" alt="đ¤´" title="Prinz" aria-label="Emoji: Prinz">
Growth rates are tightly correlated with Retention and vice versa
Startups with more than 110% net retention grew at 2X the rate of those under 100%
Lesson: Stop filling a leaky bucket and make retention a priority!
Growth rates are tightly correlated with Retention and vice versa
Startups with more than 110% net retention grew at 2X the rate of those under 100%
Lesson: Stop filling a leaky bucket and make retention a priority!
Growth rates are tightly correlated with Retention and vice versaStartups with more than 110% net retention grew at 2X the rate of those under 100%Lesson: Stop filling a leaky bucket and make retention a priority!" title="Retention is King https://abs.twimg.com/emoji/v2/... draggable="false" alt="đ¤´" title="Prinz" aria-label="Emoji: Prinz"> Growth rates are tightly correlated with Retention and vice versaStartups with more than 110% net retention grew at 2X the rate of those under 100%Lesson: Stop filling a leaky bucket and make retention a priority!" class="img-responsive" style="max-width:100%;"/>
Lastly, chart 6 breaks down growth rates and ARR throughout the lifecycle of a startup
The median age for bootstrapped companies is 10 years while VC-backed SaaS coâs was just 6 years
On avg VC backed startups hit $1M ARR in 4 years, bootstrapped in 7.5 years
The median age for bootstrapped companies is 10 years while VC-backed SaaS coâs was just 6 years
On avg VC backed startups hit $1M ARR in 4 years, bootstrapped in 7.5 years
All in all thereâs a ton of interesting data points in the full report (linked below)
Keep these in mind as you look ahead to the future of your startup, but always know you are competing with yourself, not benchmarks, you know what you and your team are capable of
Keep these in mind as you look ahead to the future of your startup, but always know you are competing with yourself, not benchmarks, you know what you and your team are capable of
Hereâs the full report
https://www.saas-capital.com/wp-content/uploads/2020/08/RB-22-2020-Benchmarking-Private-SaaS-Company-Growth-Rates.pdf">https://www.saas-capital.com/wp-conten...
https://www.saas-capital.com/wp-content/uploads/2020/08/RB-22-2020-Benchmarking-Private-SaaS-Company-Growth-Rates.pdf">https://www.saas-capital.com/wp-conten...
Sooo....How does your startup stack up? Comment below https://abs.twimg.com/emoji/v2/... draggable="false" alt="đđź" title="RĂźckhand Zeigefinger nach unten (mittelheller Hautton)" aria-label="Emoji: RĂźckhand Zeigefinger nach unten (mittelheller Hautton)">
Also, thanks @robertmclaws found this from your LinkedIn https://abs.twimg.com/emoji/v2/... draggable="false" alt="đđź" title="Raising hands (mittelheller Hautton)" aria-label="Emoji: Raising hands (mittelheller Hautton)">
