After last week’s post on 2015 Inc. 500 Software Companies, I wanted to dig in and see how funding for Software-as-a-Service (SaaS) startups compared to revenues. Here’s the data for the five fastest growing SaaS companies on the 2015 Inc. 500 list:
- Sprout Social
With this tiny sample size, there doesn’t appear to be much correlation between revenue for small, fast-growing SaaS startups and funding. What is clear is that it requires a tremendous amount of capital to grow quickly, since scaling a SaaS startup is expensive.
What else? What are some more thoughts on startup funding relative to revenue?