B2B Benchmarks

A collection of benchmarks for B2B businesses (mostly relevant for early-stage SaaS).

• Metrics
  • Churn
  • Time to sign
  • Revenue per employee
  • Burn multiples
  • Sales win rate
  • Time to first million ARR
• Fundraising
  • Time between Series A and Series B is 31 months on average
  • SaaS benchmarks for Series B
• Valuation multiples
  • Startup multiples fell from 100 to 39 times ARR in 2023
  • Revenue multiples fell from 24x in 2021 to 10x in 2022

Links to this note

• Net Magic Number

  Net magic number is a measurement of go-to-market (GTM) efficiency for SaaS businesses. A magic number less than 1.0 indicates the business will lose money on each customer. Top SaaS businesses making less than $25MM in revenue per year have a magic number of 1.7 according to benchmarks from Iconiq Capital as in their business returns 1.7x for every sales and marketing dollar they spent to acquire customers.