Average SaaS Growth Rate in 2024: Brief Guide for Startups

While the average age for startup owners is nearing middle-aged, only around 5% of startup owners are more than 60 years old. The average time it takes for startups to begin making a profit is around 2 to 3 years. Many are still wildly successful as private companies, but a very small percentage make it to the stock exchange. Bird is an electronic scooter rental company that was founded in September 2017.

Having partners creates more accountability and brings complementary skills to the venture. Anastasia worked in management consulting and tech startups, so she has lots of experience in helping professionals choosing the right business software. CB Insights and Fast Company set out to build an algorithm to discern the financial health of startups and came up with 50 companies likely to grow into a unicorn. Hard to imagine, but improper management is the second biggest factor contributing 18% to startup failure rates. So, ensure to incorporate proper team management applications and find ways to inspire the team.

Jul 25 From Seed to Scale: Analyzing Revenue Growth Patterns in Tech Startups

FinTech Startups in the Asia Pacific and Oceania Region showed fluctuating growth from 2018 to 2024 (January), at an annual average of 17.86%. Over the last seven years, FinTech Startups in the region were growing at an average of 24.93%. There were 3,583 FinTech Startups in 2019; 7,385 in 2020; 9,323 in 2021; 9,681 in 2023; and 10,969 in 2024 (January). Based on data reported by Statista, FinTech Startups in North America, Central America, South America, and the Caribbean have been growing steadily from 2018 to 2024 at an average of 16.14%. Pre-seed funding, which is the first round of startup equity, has a valuation of $1M to $10M lasting 12 to 18 months. According to the 2022 National Entrepreneurship Context Index of the Global Entrepreneurship Monitor, the United Arab Emirates is number one among the world’s economies to start a business in.

Success Story: Figma

Benchmarking your SaaS company’s performance against public SaaS firms may seem straightforward, but it has its limitations. The vast size disparity between public corporations and smaller, privately held ones can lead to misleading or distracting comparisons. To address this information gap, we initiated our annual survey a decade ago, aiming to assist small, private companies in gaining better insights into how they fare compared to their peers. Our survey places emphasis on tracking key SaaS metrics, one of which is revenue growth.

Q2. How is a startup different from a traditional business?

The internet software & services come next, with 18.7% of all startups representing internet services, followed by artificial intelligence, representing 7.8% of all startups in the world. Ant Financial, a Chinese fintech company that spun off from Alibaba’s Alipay, is the highest valued startup unicorn global, followed by ByteDance (Toutiao), worth over US$ 140 billion. Collectively, the 900 unicorns are worth over US$ 3 trillion; about 75% of the 900 unicorn companies have joined the one-billion market cap in the last three years. Some of the major reasons for their failure are lack of capital, poor products,  inadequate funding, inexperienced teams, and ineffective leadership.

• And now, when you know what growth rate you may benchmark at, I want to talk about the importance of building a proper financial forecast.
• The study revealed alarming results, beginning with most (87.7%) business owners suffering from mental health issues.
• It’s important to note that MRR is just one of many metrics that SaaS companies should be tracking.
• You will see that companies that raised investment had a much higher number of employees at most stages of business.

The rise of Netflix with the growth of streaming content and home broadband. The opportunity that Slack found, as the communication platform for tech-oriented organizations. They each have their own growth story, which can’t necessarily be emulated. For example, in a power law driven world of venture capital, there is a gulf in terms of performance between the few ‘winners’ and the many ‘losers’. Any startup aiming for the ‘average’ performance of those two groups is going to be a ‘loser’ by default. Less than a sixth of startups need more than $100,000 to get started.

• Cash flow uncertainties and short-run rates are not why most small businesses fail; it has more to do with self-confidence and drive to succeed.
• Growth rates not only serve as a barometer for the health and trajectory of a startup but also play a pivotal role in attracting investment, guiding decision-making, and shaping strategy.
• Interestingly, startups with co-founders have higher success rates than those with single founders.
• I am forecasting the sales on a start up I am in the process of creating a business plan for.

8% say private equity is their next go-to funding source, while only 6% believe organic growth will be their startup’s next funding source. Besides being confident in their abilities, many small business owners responded that they employed the right accounting technologies that eased the burden of financial distress. Providing cash flow access and valuable insights—reliable accounting software—helps founders focus on business, not books. Venture funding in Q totaled $91 billion, with AI startups attracting nearly $19 billion, representing 28% of the total funding. Artificial intelligence (AI) was the leading sector in terms of funding, with AI startups average growth rate for startups securing close to $19 billion, representing 28% of all venture capital in the quarter.

Tech startups that were less than 2 years in business had annual revenue between $66,000 per year for B2C Software startups up to $934,000 in annual revenue for D2C Product startups. Behind every successful startup is a group of dedicated and talented people working together toward a common goal. Understanding the dynamics of startup teams is critical to building a cohesive and effective workforce. Startup funding and investors are essential for the growth and success of a business. Entrepreneurs who take the time to understand the different types of funding available and investors’ expectations can position themselves for success. Many of the fastest growing companies were a product of a particular combination of timing and technology.

Second, the strategy needs to be implemented correctly so that it can result in growth. Third, the company needs to be able to keep track of the progress and results of the strategy so that they can make adjustments as needed. Millennial or Gen Y entrepreneurs—those born between 1981 to 1996—make up 21% of startups in 2025. This shows a 25% increase in the number of startups owned by Millennial entrepreneurs from 2024.