5Unlocking Growth: The Secret Behind Efficient Scaling of SaaS Companies

In terms of number of employees. You know, one heuristic to think about is the number of employees per ARR for a company. We know, based on publicly available Data, that at IPO, that the average sort of SaaS company at IPO has about 1,000 employees and about 100 million of ARR. So that ends up being about $100,000 of ARR per employee. As you go earlier, the amount of AR per employee shrinks because obviously, as a company scales up, it should be becoming more efficient. You should be getting more operating leverage. What you'll typically see is at the Series A, you know, you'll have, like I said, about 40 to 50 employees, around a million dollars of ARR. That works out to about 20 to $25,000 of AR PER.