Maxio Institute B2B Growth Report: November 2024

In this report, we present an update on the overall state of today’s B2B subscription marketplace based on the actual billing data of over 2,000 B2B SaaS companies. We discuss:

• Growth is strong but slowing. While private B2B companies are still seeing a healthy average annualized growth rate of 15%, growth rates have declined slightly quarter-over-quarter.
• The smallest startups are growing the fastest. Companies with less than $1 million in annual revenue continue to gain momentum from their low point in late 2022, growing 23% in Q3 compared to a more modest 12% growth rate for those over $1 million.
• Gaps in performance based on pricing model are narrowing. As the B2B market begins to slow, differences in growth rates between companies with different characteristics like usage-based and fixed-rate pricing are less pronounced.
• Investor behavior has changed as capital costs increased. The B2B venture market is producing fewer investments but with larger average dollar sizes at larger average companies.
• A new “Funding Trifecta” is emerging in B2B. The fastest growing private companies reach at least Series B, raise over $10M, and have raised money within the last three years.