Bootstrapping a SaaS company requires profitable growth. We went and found some of the most profitable bootstrapped SaaS companies so you could analyze how they’ve done it.
Some of the founders manage against metrics like revenue per employee. The target? $600k or higher. They won’t hire new team members until new hires add enough revenue to get back to $600k in revenue per employee. Other founders manage to a payback period of 3 months or less. Some of the most successful bootstrapped SaaS companies have instant payback periods. They upsell items like consulting, books, and event tickets to immediately recover their customer acquisition cost (CAC) so they can then re-invest it immediately. Call it a “fast money flywheel”.
Verint Systems provides Actionable Intelligence solutions for enterprise workforce optimization and security intelligence.
Software as a Service Platform(SaaS)
Lloyd's Register Group is a technical and business services organization and a maritime classification society. It serves many sectors, namely energy, food, beverage, hospitality, marine, shipping, manufacturing industry, oil and gas. The company was found
Mr. Ted Prince serves as Senior Vice President, Analytics Solutions at NeuStar. He oversees Neustar's strategy and execution for corporate development and the management of strategic relationships, as Neustar transforms into an Information Services company
Tyler Technologies is a software company providing integrated software and technology services to the public sector.
Mindtree Limited is an Indian multinational information technology and outsourcing company headquartered in Bangalore, India and New Jersey, USA.
Software AG provides business process management, data management, and consulting services worldwide.
It Infrastructure Software
Extreme Networks, Inc. (EXTR) creates effortless networking experiences that enable all of us to advance. We push the boundaries of technology leveraging the powers of machine learning, artificial intelligence, analytics, and automation. Over 50,000 custom
Comprehensive HR Tech for enterprises comprising of Talent Acquisition, Talent Management, and Human Capital Management.
Email Marketing Software
Mailchimp is the All-In-One integrated marketing platform for small businesses, to grow your business on your terms. It's easy to use - start for free today!
NWN Corporation, an information technology (IT) systems integration company, provides networking services and solutions in North America.
83 of the fastest growing companies that also have the most revenue have a clear expansion revenue strategy. On average, sales reps are selling plans where starting contract value is $4,606.
Those same companies employ 1,678 sales reps that carry a quota. The most common compensation plan used by these companies is a 1:5 ratio of sales rep on target earnings (OTE) to quota. Meaning if a rep can earn $200k in base and commissions, quota target for that year is set at 5x, or $1m in new ARR closed.
If you’re going to build a high growth SaaS company, you need to figure out how to scale with quota carrying sales reps.
We can measure this a variety of ways. Which company has the most revenue per employee? What about dollars in revenue compared to dollars raised? What about time, which founder went from $0 to $10m the fastest?
Looking deeper at dollars in revenue compared to dollars raised, bootstrappers take the cake because they self fund (denominator zero). When we look at companies that have raised at least $1m, Actito is the clear winner generating $21m in revenue, growing 100% yoy, on just 1m raised ($.05 dollars raised for every $1 of revenue).
Omnisend comes in a close second with $.08 dollars raised for every dollar of revenue. Doing $19m as of December 2020. Proposify gets honorable mention with $0.46 dollars raised (3.25m) for every dollar of revenue ($7m).
The worst performers here are companies like YayPay with $3.68 dollars raised ($14m) per dollar of revenue ($3.8m). Many of the worst performers just did a round of funding and haven’t had a chance to deploy to drive growth yet. That makes this data less valuable but still illustrative.