SaaStr · 2022-02-19 · 1565d

The Upmarket Transition: Why 50% of SaaS Companies Eventually Move Upstream

Most SaaS companies start by targeting SMBs due to product immaturity and resource constraints, but eventually migrate upmarket to serve enterprise customers as their product matures. Companies solving universal business problems naturally attract enterprise demand, and early adoption of large customers can accelerate growth trajectories. The key is building products simple enough for SMBs yet scalable enough for enterprises.

8 metrics· Cited 0× in the knowledge base ·Open source ↗

Metrics in this report

Calendly Enterprise Sales Launch

50$M ARR

median launch point

ARR milestone for building enterprise team

Enterprise Customer Count

2000count

Zoom

Large enterprise customers

Enterprise Revenue Mix

63%%

Zoom 10+ seat deals

Large deal revenue proportion

Enterprise Revenue Mix

50%%

Asana from sales team

Dedicated enterprise sales revenue

Enterprise Revenue Mix at Unicorn Scale

50%%

Slack at $1B ARR

Enterprise segment revenue proportion

Growth Rate Post-Upmarket

20%%

SurveyMonkey current

After upmarket transition

Growth Rate at IPO

17%%

SurveyMonkey at IPO

Before upmarket transition

PagerDuty ARR at Transition Point

125-250$M

IPO to current

Growth during enterprise acceleration