The SaaS industry has experienced rapid growth in recent years. With industry expansion comes expansion in all facets of the market. More data, resources, blog posts, thought leaders, ideas, than ever before. While there are great resources being shared on a daily basis there are also equally poor resources being shared on a daily basis. So do how you filter the signal from the noise? Why do SaaS Metrics matter and what should you be tracking?
SaaS companies are inherently driven by data and metrics so common SaaS metrics benchmarks and metrics are starting to become more common across the industry. With hundreds of venture firms focusing in SaaS, many have started to share their findings to continue to spur growth in the industry and increase the quality of early stage SaaS companies.
SaaS Metrics Benchmarks
Comparing your company to the others around you is one of the best ways to ensure that you are on the right track with your SaaS metrics. Being a SaaS startup founder can often feel like you’re alone in the journey so being able to stack up against other using SaaS metrics benchmarks is a must.
One of our favorite SaaS metrics benchmarks is the annual metrics benchmark from the team at OpenView ventures. We’ve partnered with OpenView to send their survey to 400+ SaaS companies on an annual basis. From here, the team takes a look at the data and uncovers underlying trends and directions in the market. We specifically love this SaaS benchmark because it shows vital SaaS metrics broken down by company size. It can be intimidating comparing your data to powerhouses like Slack or Salesforce so the OpenView SaaS metrics benchmarks allows you to compare yourself to companies at a similar stage.
Another great SaaS metrics benchmark is from Christoph Janz of Point Nine Capital. Every year, Christoph puts together a SaaS funding napkin. The napkin is a breakdown of SaaS metrics and benchmarks the data a company needs to hit to raise a seed, series A, series B, etc. Generally, Christoph uses revenue, team, product/market, sales/marketing, and the companies’ moat to benchmark what it takes to raise at different stages of a company lifecycle.
No matter what source you use, finding a quality SaaS metric benchmark will greatly help in your journey to scale the company. While no company or founder is the exact same, having a benchmark to turn to will help shine a light at the end of the tunnel.
