SaaS Capital just dropped their 14th annual survey analyzing growth rates across 1,000+ private B2B SaaS companies. This isn’t your typical “here’s what public companies are doing” report – this is real data from real private companies dealing with real challenges in 2025.
Also, importantly, it’s not just a survey of venture-backed start-ups. They go broader, and it encompasses many slower growing start-ups. A
nd it excludes many AI high-fliers. It’s a good look at all B2B start-ups, not just the higher fliers.
After diving deep into their findings, here are the 5 game-changing insights every B2B founder and executive needs to understand right now.
Learning #1: The Growth Reality Check – We’re Back to Pre-March 2020 Levels of Growth For Most (And That’s Actually OK)
The brutal truth: Overall median growth dropped from 30% in 2023 to 25% in 2024. Yes, you read that right – a 5 percentage point decline year-over-year.
But here’s what most people are missing: This isn’t necessarily bad news.
The survey reveals we’re returning to “pre-pandemic levels”, we’re normalizing after the artificial highs of 2021-2022. Remember when everyone was throwing money at anything with “SaaS” in the name? Those days are over, and frankly, that’s healthy.
What this means for you:
- If you’re hitting 25% growth, you’re literally at the median – don’t panic. That’s not enough to raise a big VC round, but it does put you at the median.
- The 6.9% of companies reporting flat or negative growth is still well below the 13% peak we saw in 2020. No excuses, folks 😉
- Focus on sustainable growth over vanity metrics if you’re … at the median.
The takeaway: Stop chasing the unsustainable growth rates of 2021-2022. Solid, consistent 25%+ growth is the new exceptional.
Learning #2: Size Matters More Than You Think – Your Growth Benchmarks Are Completely Wrong
This might be the most important insight in the entire report: A 25% growth rate means completely different things depending on your ARR.
Here’s the data that will blow your mind:
- $2M ARR company at 25% growth: Below median
- $20M ARR company at 25% growth: Above median
The implications are staggering:
- That smaller company might be valued at 3x revenue
- The larger company could be worth 10x revenue
- Same growth rate, 233% difference in valuation multiple
But it gets even more extreme at the top end:
To be in the top 25% (75th percentile):
- <$1M ARR: Need 100% growth
- $1-3M ARR: Need 50% growth
- >$20M ARR: Need just 31% growth
What this means for you:
- Stop comparing yourself to companies with different ARR levels
- Understand that growth gets harder as you scale (and that’s normal)
- Your investors should have different expectations based on your size
The takeaway: Context is everything. Know where you stand relative to your actual peer group, not the entire SaaS universe.
Learning #3: The NRR Superpower – This One Metric Can Transform Your Entire Business
Here’s a stat that should make every SaaS executive stop what they’re doing: Companies with the highest Net Revenue Retention report median growth that is 83% higher than the population median.
The data reveals a clear exponential relationship:
- Below 90% NRR: 15% median growth
- 90-100% NRR: 15% median growth
- 100-110% NRR: 20% median growth
- 110-120% NRR: 30% median growth
- 120-130% NRR: 32% median growth
- Above 130% NRR: 44% median growth
This is what SaaS Capital calls “a rare example of increasing returns from investment in upsells and cross-sells.”
Why this matters:
- Moving from 90-100% NRR to 100-110% NRR adds 5 percentage points of growth
- The impact is cumulative – it compounds year after year
- Unlike acquisition-driven growth, retention-driven growth is more predictable and valuable
What this means for you:
- Stop obsessing over new customer acquisition if your NRR is below 100%
- Invest heavily in customer success, upselling, and expansion revenue
- Track NRR as closely as you track new ARR
The takeaway: NRR isn’t just a metric – it’s your growth engine. Master it, and you’ll outperform 83% of your peers.
Learning #4: The Equity vs. Bootstrap Reality – Paying for Growth Has Hidden Costs
The data reveals a fascinating paradox in B2B funding strategies.
Equity-backed companies do grow faster:
- Bootstrapped: 23% median growth
- Equity-backed: 25% median growth — but much faster in early days
But here’s the kicker – they’re literally paying for it:
- Equity-backed companies spend 89% more on sales and 100% more on marketing
- Only 46% of equity-backed companies are profitable vs. 85% of bootstrapped companies
The most telling stat: 85% of bootstrapped companies operate within two percentage points of breakeven or are profitable, while less than half of equity-backed companies can say the same.
What this means for different company types:
If you’re bootstrapped:
- Don’t feel pressure to match VC-backed growth rates
- Your capital efficiency is actually a competitive advantage
- Focus on sustainable unit economics over growth-at-all-costs
If you’re equity-backed:
- Understand that you’re trading capital for speed
- Have a clear path to profitability mapped out
- Don’t assume more money automatically equals better outcomes
The takeaway: Growth without unit economics is just expensive customer acquisition. Choose your funding strategy based on your market timing and competitive dynamics, not vanity metrics.
Learning #5: The Age and Stage Wisdom – When to Push vs. When to Optimize
The survey reveals a clear pattern that most founders misunderstand: Company age and growth rates are inversely correlated, and that’s exactly how it should be.
The data shows:
- Year 1-2: 85%+ growth rates (small denominator effect)
- Year 3-5: 45-60% growth rates (finding product-market fit)
- Year 6-10: 25-35% growth rates (scaling and optimizing)
- Year 10+: 15-25% growth rates (mature and efficient)
Here’s what’s fascinating: The survey used to show an implied “SaaS life expectancy” of 6-8 years due to founders selling. But that window is widening as funding markets have slowed.
The new reality:
- 57% of bootstrapped companies are older than 10 years
- 46% of equity-backed companies are older than 10 years
What this means for you:
If you’re in years 1-3: Focus on finding product-market fit, not optimizing for efficiency If you’re in years 4-7: This is your scale phase – invest in systems and processes If you’re 8+ years: Optimize for profitability and efficiency over pure growth
The strategic insight: Don’t fight the natural evolution of your business. Each stage requires different priorities, and trying to maintain year-2 growth rates in year-8 is a recipe for disaster.
The takeaway: Understand where you are in the company lifecycle and optimize for the right metrics at the right time.
The Bottom Line: SaaS is Maturing, and You Have to Adapt
The 2025 data tells a clear story: The SaaS industry is maturing. Growth rates are normalizing, companies are focusing more on profitability, and the market is rewarding sustainable business models over growth-at-all-costs.
For founders and executives, this means:
- Benchmark against your actual peers – not the entire market
- Invest heavily in Net Revenue Retention – it’s your growth multiplier
- Choose your funding strategy wisely – understand the true cost of capital
- Optimize for your stage – don’t fight the natural business evolution
- Focus on sustainable growth – the market rewards durability over velocity
The companies that understand these dynamics and adapt accordingly will be the winners in the next phase of SaaS evolution. The companies that keep chasing 2021-style metrics? They’ll be the cautionary tales.
Based on SaaS Capital’s 2025 Benchmarking Private SaaS Company Growth Rates survey of 1,000+ private B2B SaaS companies. The full report provides detailed breakdowns by ARR, funding type, company age, and retention metrics.
