One Capital Co., Ltd. Independent VC One Capital conducts survey on metrics of unlisted SaaS companies

One Capital Co., Ltd.
Independent VC One Capital conducts survey on metrics of unlisted SaaS companies Companies with ARR (annual recurring revenue) up to 2 billion yen answered that the ARR growth rate for this fiscal year will be close to a 100% increase compared to the previous year.

One Capital Co., Ltd. (Headquarters: Minato-ku, Tokyo; CEO: Shinji Asada), which operates a VC fund specializing in B2B SaaS, conducted a survey on the metrics of unlisted SaaS companies. A detailed report of the survey results will be provided to respondents only, and an executive summary (partial excerpt) will be made public.

Due to the nature of the data on the performance of startups (unlisted companies), it is rarely disclosed to the outside. As a result, entrepreneurs and business managers cannot compare their company’s growth rate and investment efficiency with those of other companies. So One Capital conducted a survey of SaaS startup entrepreneurs and business managers. We asked about metrics that are important in SaaS business, such as ARR (Annual Recurring Revenue) growth rate, gross profit margin, and churn rate. And to help start-up management, we published the median value and the top 25% of the metrics as benchmarks.
With the cooperation of 70 people (companies) in this survey, we provided the “JAPAN SAAS BENCHMARK REPORT” to the respondents. An executive summary (partial excerpt) of the survey results will be made available to the public.
executive summary
ARR Growth Rate
・In FY2020, regardless of the scale of ARR (including companies with ARR of 2.1 billion yen or more), a growth rate of nearly 100% (doubled) was achieved.
・In the FY23 forecast, companies with ARR up to 2 billion yen answered that they would maintain a level close to 100%.
Gross Margin
・Gross Margin is on an upward trend as ARR increases.
Operating Margin
・Operating Margin is on a downward trend as ARR increases.
S&M ratio (sales and marketing expenses in sales)
・With an ARR of less than 100 million yen, the S&M ratio is low, and investment is being restrained until PMF is realized.
・On the other hand, many companies have started full-scale investment after realizing PMF (ARR 6-1 billion yen: S&M ratio 51% is the majority).
R&D ratio (R&D expenses in sales)
・With less than 100 million yen in ARR, the R&D ratio is 51% or more, and they are actively investing in product development.
・On the other hand, the R&D ratio is on a downward trend due to the increase in ARR (product maturity).
G&A ratio (general and administrative expenses as a percentage of sales) ・The G&A ratio is on an upward trend as ARR increases.
Runway (duration until cache runs out)
・Companies with larger ARR tend to have longer runways.
Burn Multiple
・Up to 1 billion yen in ARR, the majority of companies are “Good” and are making sound investments.
・”Amazing” is the most common answer for ARR less than 100 million yen. Since funds are limited, it is thought that emphasis is placed on efficiency.
Gross Revenue Churn Rate
・The churn rate tends to decrease as the number of customers and ARPA (average price per customer) increases.
Survey outline
Target audience: CEO, CFO, COO, business manager working for an unlisted SaaS company
Objective: Investigate SaaS startup metrics and visualize benchmarks. Help with startup management.
Survey period: December 12, 2010 (Monday) to January 8, 2011 (Sunday) Survey method: Hearing various metrics to the target person in a questionnaire format. Publish various benchmarks by ARR size, customer size, and ARPA

Will be held next time! To receive a detailed report
This survey is scheduled to be conducted one year later (2023-2024). Details will be provided to those who have registered for “One Capital Newsletter” as needed. The newsletter also includes SaaS trends and reports, as well as private job openings for investees. Register here (email address only):
Company Profile
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Details about this release:

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