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The Great ARR Acceleration: Q1’25 Numbers Tell the Comeback Story

  • The top decile of venture-backed B2B start-ups, particularly those fueled by AI, are experiencing rapid growth, with the top 10% growing at a stunning rate of 236% in Q1’25.
  • There is a significant gap widening between successful companies and others, as highlighted by the 236% growth of top decile companies compared to a median growth rate of 33%.
  • The growth trajectory of B2B start-ups has shifted from a period of stagnation and optimization (2023-2024) to explosive growth in Q1’25, signaling a new phase of rapid acceleration.
  • For SaaS businesses, the focus now lies on fast growth as the efficiency ceiling has been reached, capital is favoring revenue acceleration, and market timing plays a crucial role in capturing market share in the evolving landscape.

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