SaaS

Annual Recurring Revenue

Detailed Description

Total Funding refers to the overall amount of capital that a company or project has raised from various sources, such as investors, venture capitalists, grants, loans, or other forms of financing. It represents the cumulative sum of funds acquired throughout the company’s or project’s lifespan.

How To Calculate

To calculate it, one must add up all the funds the business has raised from different sources. For example, if a startup starts with a seed funding round of $10M, followed by $20M Series A funding and $40M Series B funding, then the total funding amounts to $70M.

Formula

ƒ Sum(Total Funding)

Benchmark

The benchmark can vary across businesses and industries. However, 5-20% CAGR is seen as not strong for small businesses. 20 – 50% is considered good, and anything above 50% is considered great for a business and showcases its upward trajectory.

Related Metrics

Monthly Recurring Revenue (MRR)
Annual Recurring Revenue (ARR)
Customer Retention and Churn rate

FAQ's

It provides a smoothed annual growth rate, accounting for compounding, making it a valuable metric for comparing investment or business performance over different periods.

No, CAGR differs from the average annual growth rate by considering the compounding effect, providing a more accurate representation of the annual growth rate.

A positive CAGR indicates that there has been overall growth in the investment or business metric over the specified period.