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Tunguz studied SaaS companies that went public and found there is no single right customer value. Large companies were built on a few big accounts (Veeva) just as much as on millions of tiny ones. It is a short, data backed answer to the worry that a handful of high value customers cannot scale.
The Optimal Average Customer Value for SaaS Startups
From tomtunguz.com, by Tomasz Tunguz by Tomasz Tunguz 5 min read
- Large companies have been built at every customer count, from ten to millions.
- A small number of high value accounts is a proven public company shape.
- Optimize for a model you can execute, not a mythical ideal contract value.
