KeyBanc Capital Markets survey of private SaaS companies shows growth acceleration in 2021

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The 12th annual survey also reveals recent data on the valuation of private companies

SAN FRANCISCO, September 21, 2021 / PRNewswire / – KeyBanc Capital Markets (KBCM), the corporate and investment banking unit of KeyCorp (NYSE: KEY), today released results for the 12e Annual Private SaaS Company Survey (formerly known as Pacific Crest Securities Private SaaS Company Survey), the benchmarking report by which the Software as a Service (SaaS) industry measures financial and operational performance. This year’s survey, which includes responses from senior executives from more than 350 companies, found a re-acceleration in growth as businesses recover from the economic disruption caused by COVID-19.

Predictions from survey respondents for 2021 show growth levels to climb back to a median of 36% for companies with more than $ 5 million in Annual Recurring Income (ARR), as disruptions from COVID-19 become less severe. Like many industries, the global SaaS private sector experienced a slowdown in growth in 2020. Median growth slowed to 28%, especially below the pre-pandemic range of 35-40% that the survey has historically seen. questioned.

“A new component of the KBCM Private SaaS Company survey includes data on recent valuations, which can be very difficult to find for private companies,” says Adam noily, Managing Director of Software Investment Banking at KBCM. “Although the survey reveals a median enterprise value of 8.4 times the ARR at the time of the trade, there is a lot of variation and a very close relationship between valuations and revenue growth.”

The KBCM Private SaaS Company survey establishes operational and financial benchmarks for executives and investors of SaaS companies, go-to-market sales strategies, net churn and retention rates and acquisition costs of customers, operational management, growth and margin structures, as well as data on valuation and exit expectations. To view the full survey results and hear a more in-depth analysis of the results, visit us at www.key.com/saassurvey.

About the KBCM Technology Group Private SaaS Company Survey
Over 350 senior executives from SaaS companies around the world participated anonymously and confidentially in the 2021 survey. Responses were submitted online between June and July 2021. KBCM cannot verify the correctness of the answers. The observations and comments contained in this document relate only to the results of the investigation and may not necessarily be applied elsewhere. For more information on KBCM Technology Group, please visit us in line.

About KeyBanc Capital Markets
KeyBanc Capital Markets is a leading merchant and investment bank providing capital markets and advisory solutions to dynamic companies that take advantage of opportunities in changing industries. Our in-depth industry expertise, vast capabilities and unique ideas are seamlessly delivered to companies in the consumer and retail, diversified industries, healthcare, industrial, oil and gas sectors. , real estate, utilities, energy and renewables and technology. With more than 800 professionals on a national platform, KeyBanc Capital Markets has more than $ 32 billion committed capital with clients and an award-winning equity research team spanning over 600 publicly traded companies. Securities products and services are offered by KeyBanc Capital Markets Inc. and its authorized securities representatives, who may also be employees of KeyBank NA Banking products and services are offered by KeyBank NA

About KeyCorp
KeyCorp’s roots go back almost 200 years to Albany, New York. Based at Cleveland, Ohio, Key is one of the largest banking financial services companies in the country, with assets of approximately $ 181.1 billion To June 30, 2021. Key provides deposit, loan, cash management and investing services to individuals and businesses in 15 states under the KeyBank National Association name through a network of more than 1,000 branches and approximately 1,300 ATMs. Key also provides a wide range of sophisticated investment and corporate banking products, such as merger and acquisition advice, public and private debt and equity, syndications and derivatives to mid-market firms. in selected sectors across United States under the trade name KeyBanc Capital Markets. For more information, visit https://www.key.com/. KeyBank is a member of the FDIC.

KeyBanc Capital Markets logo (PRNewsfoto / KeyCorp)

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