SaaS Capital Blog

SaaS Capital Index Median Company Valuation Multiples - 113021


SaaS Capital 2021 Recap and Look Ahead

No one knew what to expect going into 2021. Sure enough, the year delivered an unpredictable potpourri of economic extremes and indicators. A summary of our year-end recap and look ahead is below.

Key Takeaways on Growth Rate Benchmarks for SaaS Companies

Growth is the most important metric we track in our annual survey of private companies. It’s not difficult to benchmark your private SaaS company’s performance against that of public SaaS companies, but due to the sheer size of companies within the public data set, the resulting comparison is less than ideal. Our analysis breaks down the latest trends in growth by company size, funding type, retention, and company age so you can draw more useful comparisons when thinking about your company’s valuation.

Revenue Per Employee Benchmarks for Private SaaS Companies

A common metric by which SaaS companies track their performance is annual recurring revenue (ARR) per employee. This 2021 update explores the median ARR per employee broken down by company size and funding type, equity-backed or bootstrapped.

SaaS Capital CEO Series: Julie Rieken from Trakstar Discusses Growing Through Acquisitions

In this conversation with Julie Rieken, CEO of SaaS Capital portfolio company Trakstar, we discuss the strategy of growing your SaaS business through acquisitions. Key takeaways include: Buy vs build is the classic M&A question, but when the product is tangential enough...

Spending Benchmarks for Private B2B SaaS Companies

How much do SaaS companies spend on customer support or marketing? In day-to-day SaaS company operations, questions like the above are common. So, we asked survey takers what percentage of revenue is spent on cost of goods sold, customer support/success, selling costs, marketing costs, research & development, and general and administrative. This post summarizes the benchmarking data.

What Should be Included in COGS for My SaaS Business?

Surprisingly, GAAP does not have a clear definition of what should be included in a SaaS company’s Cost of Services (COS), commonly called Cost of Goods Sold (COGS) and perhaps most appropriately sometimes called Cost of Revenue (COR), so each company is pretty much left to its own judgment on what should be included.

Key Takeaways on Retention Benchmarks for SaaS Companies

SaaS Capital has been conducting the industry's top benchmarking survey in Q1 of each year for nearly a decade. Here, we summarize the findings relating to retention in our 2021 survey of private SaaS company owners and execs.

Public-Private Valuation Gap Widens for SaaS Company Multiples

The SaaS community has been using our SaaS Capital Index (SCI) successfully to guide their thinking about valuations for over five years.  Below are some important updates to the public SaaS market, private SaaS market, and our own data and analysis around the SCI.

What Should a SaaS Income Statement Look Like? (2021 Update)

A SaaS Profit & Loss (P&L) statement needs to be organized in order to be meaningful to both internal stakeholders and potential external partners, such as capital providers. As the SaaS business model has evolved, it is worth examining what an income statement should look like in 2021.

Private SaaS Company Valuations: Q2 2021 Update

The second quarter of 2021 was generally a continuation of the first quarter. Many sectors of the economy ran at their fastest pace in decades, with federal stimulus money and pent-up demand pushing against pandemic-disrupted supply chains. The "it" word for the quarter was "lumber"; close runner up was "inflation," and "transitory" rounded out the podium.