OpenView's 2018 Expansion SaaS Benchmarks Show Progress on Diversity, Improved Outcomes for Product Led Growth Businesses & Benefits of Price Increases
The 2018 survey reports on results from more than 400 B2B software businesses ranging from pre-revenue to $50M+ in ARR.
BOSTON, Sept. 12, 2018 /PRNewswire-PRWeb/ -- Today, OpenView, the expansion stage venture capital firm, released the results of the 2018 Expansion SaaS Benchmarks survey. This year's report was based on data from more than 400 SaaS companies, ranging from pre-revenue to $50M+ in ARR.
The 2018 Expansion Benchmarks Report (you can find the 2017 results here) culls data from SaaS organizations of all sizes and stages to help these businesses understand what does and does not work when it comes to building a generational software company.
From the survey data, it's clear that 2018 is the year of product led growth (PLG) businesses.
According to Blake Bartlett, Partner at OpenView, "The future of growth is product led. This isn't merely the latest fad or buzzword. Data from our survey shows that companies leveraging a PLG strategy perform better on average – faster growth, higher margins, lower burn and stronger valuation multiples."
In fact, this is proven out on the public markets as well where public product led growth companies trade at higher forward multiples, have higher gross margins, spend far less on sales & marketing and grow faster than their non-PLG peers.
Additional findings from this year's report show:
- Progress around gender parity: The 2018 survey shows that 37% of SaaS companies surveyed had at least one female Board member, up from 29% in 2017.
- Pricing is key to increased revenue: Of the companies surveyed that altered their product pricing, two-in-five reported a 25% or higher increase in ARR as a result.
- To reach scale, companies must sell to North America: Among European companies surveyed that reach $10M in ARR, nearly half of their revenue comes from North America.
You can view an interactive overview of this year's survey results here and download an in-depth look at the full dataset here.
The 2018 Expansion SaaS Benchmarks survey was conducted in partnership with Foundry Group, MMC Ventures, Two Sigma Ventures, Point Nine Capital, iNovia, Boldstart Ventures, High Alpha, Visible, Karma Ventures, the University of Toronto Impact Centre and Communitech.
About OpenView
OpenView, the expansion stage venture firm, helps build rapidly expanding software companies into market leaders. Through our expansion platform, we help companies hire the best talent, acquire and retain the right customers and partner with industry leaders so they can dominate their markets. Our focus on the expansion stage makes us uniquely suited to provide truly tailored operational support to our portfolio companies. Learn more about OpenView at ov.vc.
SOURCE OpenView Venture Partners
Share this article