Thus, the emergence capital has made an excellent report here on B2B startups, “Beyond the 2024 references”With a ton of excellent data on 664 software startups.
A room that I loved is the way in which the growth rates of 2023 compared to 2022 for the upper quartile software startups:
Now, to be clear, and I know it’s a bit brutal – the “upper quartile” is not general enough to be funded by VCS. They are looking for higher decile startups, or more precisely Triple Triple Double Double From $ 1 million on. They are looking for 100% or better growth at $ 10 million arr. Maybe 80% if they really believe that things take off. And certainly> 100% annual growth at $ 1 million arr. More about this here.
But the upper quartile is always an excellent reference to compare and learn from your peers:
- From $ 1 million to $ 5 million, upper quartile startups increased by 100%. But the median only increases by 53%. A huge gap.
- From $ 5 million to $ 20 million, higher quartile startups increased by 58%. The media is 29%. Not funded, but always a growth rate that can worsen something great in time.
- Things become difficult from $ 20 million to $ 50 million. The upper quartile increases by 38% further – but the bottom shrinks at -7%. The wall a lot in SaaS has struck if they do not cross it. When new entrants and changes pass them.
And if the quartile greater than $ 5 million to 20 million dollars increases only 58%, and the bar there is 100% growth to increase a VC tour … Only a subset of the upper quartile can even Increase now.
The report is data of 800 startups supported by a company. The best VC funds. So, what percentage of start-ups supported by a company … are still financialable? Perhaps only 10% to 15% of startups supported by VC still have growth rates to increase another round.
This is linked to the updated data on the upper decline. The upper decline is finuncilled through $ 20 million Arr … but maybe not even after that. You may need to be better than the upper decile of all software companies supported by a company to increase a late stage:
Some other interesting data points:
- 60% of B2B startups have already integrated Genai into their products
- It takes 22 months now to increase a series A and 25 months to raise a B series
- The NRR is broken at all levels, but the upper quartile startups all have 100% + NRR
- While startups go through $ 50 million Arr, 40% of their new reservations come from the upward sale
- The real CACS on average is always more than 20 months old in all categories
- Startups at $ 5 million + ROC already crosses $ 200,000 in employees per employee
- In fact, 79% of startups did not increase prices last year
Many more good things in the report here.
Screenshot
And a deep dive related to large data on a similar subject of redpoint here::
https://www.youtube.com/watch?v=EI4TVYX3RIK