2017 Expansion Benchmarks

Early this summer, we surveyed 300 enterprise software companies including a mix of company size from pre revenue all the way to more than $20 million in ARR and across every category of software. The participants included CEOs, CFOs and VPs of Finance. To ensure broad distribution, we partnered with Mattermark, Point Nine Capital, Foundry Group, First Round and Visible.

The point of this survey was not to reinforce our own investment thesis, but to gain a better understanding of how software companies are performing as a whole. Given the inflated valuations and limited IPOs over the last five to ten years, we thought it important to reframe the conversation of how the tech ecosystem defines success in an expansion stage software business.

Success isn’t always an IPO in five years. More often, success means building a sustainable, enduring business that improves the lives of its employees, customers and shareholders.