KeyBanc: Only 41% of SaaS Companies Price By Seat Now
David Skok of Matrix Partners and KeyBanc have been doing an incredible SaaS startup survey for many, many years and the latest edition is out here.
A couple of points jumped out to me:
#1. Only 41% of the SaaS companies in the survey use per-seat pricing. The survey includes infrastructure and B2D/API companies, so this isn’t a huge surprise. But it’s a good reminder that per seat pricing is great — when it’s what the customer wants. We’re all SaaS buying experts now. We know how we want to pay.
#2. The average SaaS company burns $52m to get to $100m in ARR. A reminder sometimes it’s best to raise it, but not spend it all. SaaS startups clearly aren’t burning all those huge amounts they raise. At least, not in many cases.
#3. The average discount for Annual contracts is 10%. Less than I would have expected.
Take all these metrics a just a bit of a grain of salt, since the response pool is large, but not vast in each individual segment. Still, it’s great to see this data. We just don’t usually get it this way.