The Pressure to Move Up Market Facing SMB SaaS Startups
Tom Tunguz
SEPTEMBER 13, 2016
ARR 1 5 10 25 50 100. New Customers per Year 1333 6667 13,333 33,333 66,667 133,333. When an SMB SaaS startup is young with quickly growing revenues, more of the same works. A $1M ARR SaaS startup with an average selling price of $750 per year needs to add 1,333 each year on average to double. Fast-forward two years when the company is at $5M in ARR and the business needs to be adding 13,333 customers each year.
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