GP Bullhound published the results of a study on the SaaS market in Europe. As it turned out, the average payback time of such a business – 11.5 months, if the company’s customers are small and medium-sized businesses. Even faster return on investment for those who focus on large businesses, they need only 10.4 months.
The data results also show that complex customer acquisition contracts for SaaS take longer to recoup the investment.
For example, public sector companies took an average of 15.7 months for a full payback, similar to the 15.2 months for SaaS contractors in infrastructure and cybersecurity.
Meanwhile, there was optimism among the SaaS CEOs surveyed in anticipation of the macroeconomic shocks expected next year.
About 80% of CEO respondents said revenue growth remains a top priority for 2023, with more than a third expecting to seek new capital next year at this point. Perhaps B2B SaaS marketing will help them do just that.
Alexis Skorer , partner at GP Bullhound, commented, “Given the macroeconomic headwinds that have significantly impacted SaaS valuation in the public market, there is an increasing focus on capital-efficient growth for both public and private companies.
“There is reason to be optimistic about the prospects for European SaaS, and our research indicates a high level of sustainability among a significant portion of European software companies.”
