So Emergence Capital put together a great report here on B2B startups, “Beyond Benchmarks 2024”, with a ton of great data across 664 software startups.

One piece I loved is how 2023 growth rates compared to 2022 for Top Quartile Software Startups:

Now to be clear, and I know this is a bit brutal — “Top Quartile” isn’t in general enough to get funded by VCs.  They’re looking for Top Decile, or more specifically, startups that can at least Triple Triple Double Double from $1m ARR on.  They’re looking for 100% growth or better at $10m ARR.  Maybe 80% if they really believe things are taking off.  And certainly > 100% annual growth at $1m ARR.  More on that here.

But top quartile is still a great benchmark to compare and learn from your peers:

  • From $1m-$5m ARR, top quartile startups are growing 100% still.  But the median is only growing 53%.  A huge gap.
  • From $5m-$20m ARR, top quartile startups are growing 58%. The media is 29%.  Not fundable, but still a growth rate that can compound to something awesome over time.
  • Things get tough from $20m-$50m.  Top quartile still are growing 38% — but the bottom are shrinking at -7%.  The wall many in SaaS hit if they don’t push through it.  When new entrants and change pass them by.

And if the top-quartile at $5m-$20m are only growing 58%, and the bar there is 100% growth to raise a VC round … only a subset of the top-quartile can even raise right now.

The report is data from 800 venture-backed startups.  From top VC funds.  So what percent of venture-backed start-ups … are still fundable?  Maybe just 10%-15% or so of VC-backed startups still have the growth rates to raise another round.  

This ties to updated data on the Top Decline.  The top decline is fundable through $20m ARR … but perhaps not even after that.  You may have to be better than Top Decile of all venture-backed software companies to raise a late stage round:

A few other interesting data points:

  • 60% of B2B startups have already integrated GenAI into their products
  • It takes 22 months now to raise a Series A, and 25 months to raise a Series B
  • NRR is down across the board, but top quartile startups all still have 100%+ NRR on average
  • As startups cross $50m ARR, 40% of their new bookings come from upsell
  • True CACs on average are still at 20+ months across all categories
  • Startups at $5m+ ARR are already crossing $200,000 in revenue per employee
  • Actually, 79% of startups did not increase pricing last year

Lots more good stuff in the report here.


And a related deep dive on great data on similar topic from Redpoint here:

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