SaaStr · 2013-01-08
· 4894d
Three Critical Factors to Improve SaaS Startup Success Odds
Jason Lemkin analyzes the poor odds of startup success (0.2% for meaningful exits) and argues that founders can significantly improve their chances by securing three essential elements: a great committed team, a clear understanding of a large emerging market, and a crystal-clear vision for reaching $100M ARR. These factors can increase success odds by approximately 100x.
Metrics in this report
Baseline success odds
0.2%
approximate
Probability of meaningful startup exit
Quality exits ($100M+)
20-30count
range
Out of 60 total $100M+ exits
Seed-funded startups annually
10,000count
approximate annual
Total seed-funded startups per year
Startup journey duration
7-10years
range
Expected commitment period for team
Startups with $100M+ exits
60count
average annual
Out of 10,000 seed-funded startups
Success odds improvement
100multiplier
approximate
When all three critical factors present