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”.
Campus Management provides cloud-based SIS, CRM and ERP solutions and services to more than 1,100 higher ed institutions in over 30 countries.
Our software is designed to automate operational challenges like recruiting, training, scheduling, business intelligence, shift communication, labor and inventory management. Our world-class products include HotSchedules, HotSchedules Recruit, HotSched...
Content Creators Software
EBSCO is an IT firm that provides SaaS, database, and scientific content for institutions and libraries.
Information Technology & Services
Developer of an employment marketplace intended to help people find the right job. The company's offerings include to actively connect millions of all-sized businesses and job seekers through innovative mobile, web, and email services, enabling job seekers
Information Technology & Services
Infostretch is a pure-play digital engineering services firm focused on helping companies accelerate their digital initiatives from strategy and planning through execution. We leverage deep technical expertise, Agile methodologies and data-driven intellige
Developer of an online application intended to track time and automate workflow. The company's application integrates with existing system and tracks expenses over a given period of time, enabling businesses and individuals to schedule workflow and manage
Supply Chain & Logistics Software
Simple, scalable, repeatable business solutions.
Cloud Platform as a Service (PaaS) Software
Accruent is the world's leading provider of intelligent solutions & cloud-based software for the built environment.
Enverus is the leading data, software, and insights company focused on the energy industry. Through its SaaS platform, Enverus provides innovative technologies and predictive/prescriptive analytics, empowering customers to navigate the future. Enverusâ€™ s
It Management Software
Ivanti is an IT software company headquartered in South Jordan, Utah.
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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.