Over 500 companies participated in the 2019 edition of the SAAS Benchmarks study by OpenView Partners, now in its 3rd year.
70% of the companies were under $10mn ARR and ranged from Very small to Midmarket by size. According to the findings top two concerns of founders were
– product execution and go-to-market (GTM) execution.
– 2018 was the best year on record for software IPOs with 17 new public companies raising a collective $5.1B, 2x more than the next highest year. Software companies spend $63.1B on R&D, accounting for one-fifth of all domestic business R&D in the US.
Product Led Growth is the secret sauce.
– A few years ago, only a handful of young public companies had adopted a product led growth model. Today there are 21 large public companies with a PLG model including all of the top IPOs this year.
Product Led Growth is still not fundamental to most companies. See adoption chart below.
Other takeaways include –
– teams composed of individuals across diverse geographies, races, ages and genders perform better, and
– the balance of growth and best-in-class SaaS metrics – is your best hedge against future financing uncertainty.
Where I learnt this # 260
2019 EXPANSION SAAS BENCHMARKS https://openviewpartners.com/expansion-saas-benchmarks/#.XYA1VJMzbOQ
Our latest Podcast Bits About Books is out now and focuses on the book Product Led Growth by Wes Bush.
Find a super engaging chat here: https://bizcast.in/2019/09/16/bizcast-bits-about-books-in-conversation-with-wes-bush-author-product-led-growth-how-to-build-a-product-that-sells-itself/