Eduard Danalache, Author at Scale Venture Partners

2024 Whisper Numbers: The Year of Efficient Growth

As we kick off the 2024 annual planning season, we’re sharing an early view of what we’re seeing in early-stage startups to give sense of what’s to come next year. We hope these “whisper numbers” can help you calibrate your…

“Year of efficiency” in review: How companies reduced burn rates in 2023

At the beginning of 2023, we saw CEOs and founders across the board herald the beginning of the year of efficiency. Now, 11 months later, we’ve seen that born out in the data. Both private and public tech companies have…

The bleeding has stopped: Growth ticked up for the first time in 6 quarters

November 2, 2023
Eduard Danalache
Trends
0 Comments

Scale’s quarterly Scale Studio Flash Updates use our proprietary data platform, Scale Studio, to analyze a representative sample of enterprise software startups and provide a real-time look into industry growth rates and the health of the SaaS market. Today, we…

Growth ticks down again in Q223: Scale Studio Flash Update

Scale’s quarterly Scale Studio Flash Updates use our proprietary data platform, Scale Studio, to analyze a representative sample of enterprise software startups and provide a real-time look into industry growth rates and the health of the SaaS market. Today, we explore…

Slowdown Mirrors Public Markets: Flash Update Follow-Up

We can clearly see above that public tech companies are seeing similar drop-offs in NDR to private SaaS startups. The median public SaaS NDR has fallen 10% from 121% in Q221 to 111% in Q123. While it’s a bit bumpy, the median NDR for SaaS startups has fallen a similar amount - down 8% from 112% in Q221 to 104% in Q123.

Growth slows beyond expectations in Q1: Scale Studio Flash Update

Q123 data indicates that the growth slowdown is continuing - and most companies failed to meet even the conservative plans they set earlier this year. This was the fourth consecutive quarter of decrease in both top-decile and median year-over-year ARR growth, with only 22% of companies achieving their Q123 plans.

Growth Slows while Companies Sprint to Efficiency: Scale Studio Flash Update

No one can tell exactly what 2023 will bring, but one thing is for certain: there is a sprint to efficiency with improving burn multiples and slowing revenue growth across the board. Comparing 2022 performance with 2023 plans shows the stark reality. The slowdown in ARR Growth we saw in 2022 will result in a slowdown in GAAP Revenue Growth in 2023. At the same time, startups have tightened their belts to become more efficient.

2023 Whisper Numbers: Growth Expected to Continue at Around 2022 Levels

November 30, 2022
Eduard Danalache
Scale Studio, Trends

Here's the data we're sharing with our portfolio companies as they develop 2023 annual plans.

Benchmarking SaaS Growth and Burn

This post walks through the data and methodology behind our growth and burn multiple benchmarks, summarizing some of the key decisions we made in calculating them and providing some benchmark tables that might be useful for venture-backed software startups.