Revision 2
SaaS

@namkyu · Aug 27, 2026, 8:29 AM
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 SaaS revenue outcomes are extremely unequal, particularly among independent products.
  
+In MicroConf's 2024 State of Independent SaaS data, **28% of independent SaaS companies generated less than US$1,000 in monthly recurring revenue (MRR)**, making this the largest revenue group in its survey. The same dataset reports that 65% had only 1–10 paying customers and more than half had fewer than 50.[* These figures describe independent and bootstrapped SaaS companies participating in MicroConf's survey, not the entire SaaS industry.]
−In MicroConf's 2024 State of Independent SaaS data, **28% of independent SaaS companies generated less than US$1,000 in monthly recurring revenue (MRR)**, making this the largest revenue group in its survey. The same dataset reports that 65% had only 1–10 paying customers and more than half had fewer than 50.\[\* These figures describe independent and bootstrapped SaaS companies participating in MicroConf's survey, not the entire SaaS industry.\]
  
 This means that reaching meaningful recurring revenue should not be assumed simply because a SaaS product has launched.
  
+At the other end of the market, SaaS Capital's 2026 survey included more than 1,000 private B2B SaaS companies. Across the survey, companies reported a median annual growth rate of 22%; bootstrapped companies reported 20% and equity-backed companies 25%.[* These are established private B2B SaaS companies and should not be interpreted as expected results for a new SaaS product.]
−At the other end of the market, SaaS Capital's 2026 survey included more than 1,000 private B2B SaaS companies. Across the survey, companies reported a median annual growth rate of 22%; bootstrapped companies reported 20% and equity-backed companies 25%.\[\* These are established private B2B SaaS companies and should not be interpreted as expected results for a new SaaS product.\]
  
 For bootstrapped B2B SaaS companies already generating US$3M–20M ARR, SaaS Capital reported median annual revenue growth of 15% and 90th-percentile growth of 42.3% in 2026.
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 Recurring revenue can produce attractive economics once a product has an established customer base, but revenue must pay for infrastructure, development, customer support, payment processing, marketing, administration, and employees or contractors.
  
+SaaS Capital's 2026 private B2B SaaS survey found that bootstrapped respondents had median total spending equal to **96% of ARR**. 83% were profitable or within two percentage points of breakeven. Equity-backed companies had median spending equal to 101% of ARR, with 52% profitable or near breakeven.[* These figures describe private B2B SaaS companies in SaaS Capital's survey and are not representative of every SaaS business.]
−SaaS Capital's 2026 private B2B SaaS survey found that bootstrapped respondents had median total spending equal to **96% of ARR**. 83% were profitable or within two percentage points of breakeven. Equity-backed companies had median spending equal to 101% of ARR, with 52% profitable or near breakeven.\[\* These figures describe private B2B SaaS companies in SaaS Capital's survey and are not representative of every SaaS business.\]
  
+Smaller profitable SaaS businesses can have very different economics. Among profitable SaaS businesses listed on [Acquire.com](/wiki/acquire-com), most reported profit margins of at least 50%, while the average margin among published businesses was 71% in 2025.[* Acquire.com data is marketplace data and is strongly selected toward SaaS businesses whose owners are considering a sale.]
−Smaller profitable SaaS businesses can have very different economics. Among profitable SaaS businesses listed on [Acquire.com](/wiki/acquire-com), most reported profit margins of at least 50%, while the average margin among published businesses was 71% in 2025.\[\* Acquire.com data is marketplace data and is strongly selected toward SaaS businesses whose owners are considering a sale.\]
  
 # Minimum Entry Setup
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 Customer retention has unusually large effects on a subscription business because canceled recurring revenue must be replaced before new sales produce net growth.
  
+SaaS Capital's 2025 private B2B SaaS data illustrates how retention differs by contract size. Companies with annual contract values of US$25,000–50,000 reported median net revenue retention (NRR) of **102%**; the bottom quartile was 97% and the top quartile 111%.[* NRR includes expansion from existing customers, such as upgrades and price increases, so it can exceed 100%.]
−SaaS Capital's 2025 private B2B SaaS data illustrates how retention differs by contract size. Companies with annual contract values of US$25,000–50,000 reported median net revenue retention (NRR) of **102%**; the bottom quartile was 97% and the top quartile 111%.\[\* NRR includes expansion from existing customers, such as upgrades and price increases, so it can exceed 100%.\]
  
 Retention characteristics can be very different for inexpensive self-service SaaS and high-contract-value B2B SaaS. These figures should therefore not be applied to every SaaS product.
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