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2021 Private SaaS Company Growth Rates
Great data for smaller SaaS companies — $1M to $20M+
SaaS Capital finances Software-as-a-Service companies. They lend between $2 million and $12 million to scaling B2B SaaS companies. SaaS Capital publishes great free research focused on private SaaS companies, which is pretty hard to come by. Recently they published the tenth installment of growth metric benchmarks for private SaaS companies. They break out their analysis by revenue tier (<$ 1miilion, $1 to $3 million, etc.) This is very helpful for smaller SaaS startups.
Growth by Annual Recurring Revenue Bucket
As revenues scale, growth rates decline. This is consistent with public SaaS companies. In comparison to 2019, growth rates slowed in 2020. “While two company groupings performed the same as 2019, the graph shows the clear impact of the global pandemic and economic shock in Q2 of last year. Further, more companies shrank in 2020 than in 2019, as well. Overall, 13% of the companies reported flat or negative growth in 2020, compared to just 2% in 2019.”
When you look at the growth rates of larger private SaaS companies the same trends emerge. Bessemer Ventures recently reported research on their portfolio companies:
For more information check out Bessemer Ventures Research: Scaling to $100 Million
Quartile Analysis of Private SaaS Company Growth Rates
Like public SaaS companies, there is significant variability in growth rates in each revenue bucket. “Figure 2 shows growth rate percentiles by ARR and gives us a better understanding of the ranges of growth rates that exist at each revenue stage. The immediate takeaway is that ‘top quartile performance means different things for different-sized companies. For example, a $2 million SaaS company needs to be growing at more…
