2020 Private SaaS Company Growth Rate Benchmarks
It’s not difficult to benchmark your SaaS company’s performance against that of public SaaS companies, but it’s also only slightly useful. The sheer scale of public companies makes for an apples-to-oranges comparison to smaller, private companies that do not reveal actionable performance insights.
In the Research Brief linked below, SaaS Capital provides growth rate data on over 1,400 private SaaS companies. A few of the takeaways:
- Bootstrapped companies report growing at 28% per year, whereas companies that have raised venture capital financing report growing at 55% annually.
- Only 2% of the companies in the survey reported shrinking revenue and 87% reported annual revenue growth of greater than 10%.
- It takes approximately 5 years for companies to reach $1 million in ARR. Venture capital-backed companies reach the milestone in 4 years, while bootstrapped companies get there in 7.5 years.
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