2025 SaaS Benchmarks

Indiana’s innovation economy continues to evolve as founders enter 2026 with new expectations around efficiency, customer acquisition, and capital discipline. The Predictions Workshop brought together industry leaders to help founders interpret these shifts, including Mike Langellier, Partner at High Alpha, who led the development of the 2025 SaaS Benchmarks Report. The report analyzes performance data across hundreds of software companies and provides one of the clearest windows into how the SaaS landscape is changing.

Session Overview

Langellier began by grounding the audience in the current state of SaaS. Growth is still possible, he emphasized, but it is no longer rewarded at the expense of discipline. The era of “grow at all costs” has given way to a market that prioritizes profitability, efficiency, and retention, themes that appeared repeatedly throughout the report. By studying year-over-year performance across ARR bands, team sizes, and customer segments, High Alpha sought to clarify what “good” looks like for SaaS companies today.

One of the first trends Langellier highlighted was the shift in sales efficiency. Burn multiples tightened significantly in 2024 and 2025, and companies demonstrating efficient top-line growth are now outperforming their peers in fundraising and valuation outcomes. He noted that founders need to understand not only how quickly they grow, but how responsibly they grow, because capital markets are rewarding companies that can scale with control and durability.

Langellier also explored how AI is reshaping SaaS performance. Early adopters are seeing improvements in product velocity and operational throughput. Some engineering teams are reporting output increases that would have been unthinkable even two years ago. While generative AI remains uneven in reliability, he emphasized that founders cannot afford to wait on the sidelines. The companies integrating AI meaningfully (not superficially) are beginning to pull away.

Customer behavior is shifting as well. Buyers are more discerning, cycles are longer, and pricing pressure is pushing founders to clarify value propositions. Companies with strong retention and expansion motions have become significantly more resilient. This reinforces a broader theme from the report: durable SaaS companies are anchored in customer value, not volume.

Finally, he noted a trend emerging across early-stage companies: small teams outperforming larger ones. As AI accelerates development, founders can build more with fewer resources. This aligns with broader macro shifts discussed throughout the day: a future where lean teams, disciplined operations, and clear customer value define the most competitive companies.

Key Takeaways

Efficiency is the new growth signal.
Investors are rewarding companies with strong burn multiples, healthy retention, and predictable revenue expansion rather than speed alone.

AI is beginning to reshape team performance.
Early adopters are seeing meaningful gains in product development, customer support, and operational throughput. Measured integration matters more than hype.

Retention outperforms acquisition in uncertain markets.
Companies with strong net dollar retention have become significantly more resilient as buyers grow more selective.

Smaller teams are becoming more powerful.
AI-driven tooling allows founders to achieve what previously required larger organizations, shifting expectations around staffing and execution.

Pricing pressure is rising.
Buyers expect value clarity. SaaS companies must refine messaging, packaging, and ROI proof points to maintain deal velocity.

Disciplined growth is a competitive advantage.
Markets continue to reward companies that scale with control, visibility, and responsible capital allocation.

Why It Matters

For Indiana founders, the implications are clear: the strategies that defined SaaS success five years ago no longer apply. Growth matters, but efficient growth matters more, and operational rigor will increasingly determine which companies earn investor confidence.

The trends Langellier highlighted also align with Indiana’s strengths. Lean, disciplined companies are well positioned in a region that values pragmatism, capital stewardship, and long-term resilience. Elevate Ventures sees these shifts playing out across its portfolio and supports founders who are adapting to this new market reality with precision and clarity.

Closing Reflection

Langellier’s session reinforced a central theme of the day: 2026 will reward founders who operate with discipline and clarity. For SaaS companies willing to embrace efficiency, invest in customer value, and adopt AI thoughtfully, the year ahead offers meaningful opportunity, and Indiana is ready to meet it with ambition and focus.

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