How GTM Efficiency Affects IPO Readiness

This research analyzes GTM efficiency across 72 public SaaS companies to explain why many IPO-ready firms are stalling despite strong products and market demand. It introduces GTM Efficiency as a critical metric—measuring sales and marketing spend relative to Net New ARR—and shows how prolonged inefficiency signals an unsustainable revenue model. Drawing on Lean Manufacturing principles, the paper reframes go-to-market as a Lean Revenue Factory, where each GTM motion operates as a measurable production line. By combining the Bowtie data model, closed-loop experimentation, and process-first design, the research outlines how companies can restore growth, reduce cost, and achieve the predictability required for IPO readiness in a post–Growth-At-All-Costs world.

Best For

• CEOs & Founders preparing for IPO or late-stage scale

• CFOs & Finance Leaders responsible for efficiency, predictability, and valuation

• CROs & GTM Leaders addressing declining conversion rates and rising CAC

• RevOps & Strategy teams building standardized GTM data models

• Boards & Public-market investors evaluating GTM durability and execution risk

Key Takeaways

• Since 2022, SaaS growth rates have halved while GTM costs have nearly doubled

• A GTM Efficiency Factor above 200% for multiple quarters signals an unsustainable model

• Only ~10% of public SaaS companies operate below the 100% GTM efficiency benchmark

• Growth-at-All-Costs (GAAC) created an inefficiency spiral that no longer works

• Revenue must be treated like a factory, with GTM motions as production lines

• Lean Revenue Production prioritizes efficiency, quality (impact), and durability

• The Bowtie provides a standardized data model to measure each GTM independently

• Process first, AI second: automation only works once GTM processes are proven