The article also presents findings from several benchmark reports, including SaaStr Europa 2024, Emergence Capital Beyond Benchmarks 2024, Openview 2023 product benchmarks report, and Serena Capital European SaaS Benchmarks 2023. These reports provide insights into the performance of B2B SaaS startups, such as growth rates, customer churn, fundraising trends, and the use of Generative AI. The author concludes by advising startups to be aware of these benchmarks but not to stress if they do not meet all of them.
Key takeaways:
- The most important benchmarks VCs look for in B2B SaaS include Annual Recurring Revenue (ARR), Monthly Recurring Revenue (MRR), Net Revenue Retention (NRR), Customer Acquisition Cost (CAC), Gross Margin, and Burn Rate.
- According to data presented at SaaStr 2024, the median ARR for B2B SaaS startups raising Series A funding is $3 million, while the median for Series B is $10 million.
- Emergence Capital recommends a target NRR of 120% or higher for B2B SaaS startups, indicating a healthy expansion of revenue from the existing customer base.
- OpenView Ventures’ 2023 Product Benchmarks Report found that growth is cooling, with only one-fifth of companies growing at least 75% year-over-year. However, product-led growth (PLG) remains an important part of the growth equation, with PLG leaders growing at twice the rate of traditional SaaS companies.