G2 is a peer-to-peer review site headquartered in Chicago. The company, previously known as G2 Labs, Inc and G2 Crowd, focuses on aggregating user reviews for business software.
Nathan Latka talked to G2 CEO and co-founder Godard Abel about the company’s history, recent valuation, and his hopes for a billion-dollar exit.
- CEO: Godard Abel
- Valuation: $1.1B
- Revenue: $113M ARR
- Net Revenue Retention 130%.
- 20,000+ paying customers
G2 Revenue Hit $100M+ in 2024
- Launched in 2012
- $40M ARR in 2020
- $60M ARR in 2022
- $84M ARR in 2023
- $113M ARR in 2024
In 2024, G2, the world’s leading software review platform, surpassed $100 million in annual recurring revenue (ARR). This marks a major milestone in the company’s journey since its founding in 2012.
“We will definitely break through 100 million ARR by year-end.”
-Godard Abel, CEO of G2
G2’s ability to hit this revenue mark is a testament to its ability to meet the demands of an evolving SaaS landscape.
“It’s an exciting time for us, but we’re not done yet.” By focusing on customer needs, G2 has effectively positioned itself as a key player in the industry.
-Godard Abel, CEO of G2
Since its inception, G2 has experienced exponential growth. One key factor driving this success is its ability to adapt and evolve its product offerings.
By 2021, the company had achieved a $1.1 billion valuation, cementing its place as a leading platform for software reviews and insights.
The company has also raised $240 million to date, which has played a critical role in funding its growth initiatives.
As a result, G2 has been able to expand its platform, attract new users, and enter new markets. This momentum is expected to continue, especially with the brand reaching out to new streams of revenue.
2 New Revenue Streams
G2 has diversified its revenue streams by introducing new products and services that go beyond software reviews.
These additional offerings have helped the company tap into new markets and meet the needs of its expanding customer base.
1. Revenue Stream 1
One of the most significant drivers of G2’s revenue growth is G2 Track, a tool designed to help companies monitor and optimize their SaaS and cloud expenses.
As businesses increasingly rely on SaaS products, tracking and managing these expenses has become a priority for CFOs and CIOs.
“Track is especially relevant now, with everyone trying to figure out if they are wasting money on SaaS.”
-Godard Abel, CEO of G2
G2 Track enables companies to gain a deeper understanding of their SaaS spending by integrating with financial systems like NetSuite and QuickBooks.
This data is then benchmarked against G2’s extensive database, allowing businesses to make informed decisions about where they can save money or identify gaps in their tech stack.
Hundreds of companies have already subscribed to G2 Track, and the product continues to gain traction. The addition of this tool has opened a new revenue stream for G2, contributing significantly to its overall ARR.
2. Revenue Stream 2
In addition to G2 Track, G2 has expanded its marketplace by adding more software vendors and users to its platform.
The company now lists over 100,000 software products across 2,000 categories, making it one of the largest and most comprehensive software review sites in the world.
By increasing the number of listings on its platform, G2 has attracted more software buyers, which in turn drives more reviews and data.
This continuous growth loop has allowed G2 to expand its influence in the SaaS industry and generate additional revenue through its marketplace.
Valuation of G2
G2’s current valuation stands at $1.1 billion, a clear reflection of investor confidence in the company’s long-term potential.
The company has raised $240 million in funding, which has allowed it to invest in product development, expand its platform, and scale its operations.
“We are growing well, and we will break through 100 million ARR this year,” underscoring the company’s steady growth trajectory.
-Godard Abel, CEO of G2
While G2’s primary competitor, Capterra, remains a significant player in the software review space, G2 has managed to differentiate itself through innovation.
The introduction of G2 Track, coupled with the platform’s extensive data and review insights, has given G2 a competitive edge over Capterra. By offering solutions that go beyond reviews, G2 has positioned itself as a more comprehensive resource for software buyers.
Expanding Taxonomy and Product Listings
A key strength of G2 is its comprehensive and dynamic taxonomy, which categorizes over 100,000 software products across more than 2,000 categories.
This taxonomy allows software buyers to easily navigate the platform and find the products that best meet their needs.
“Our taxonomy helps track the products and categories that are most relevant for companies.”
-Godard Abel, CEO of G2
The platform’s ability to continuously expand its product listings has been a major factor in its growth. Over the past year, G2’s listings have grown by 48%, a testament to the platform’s relevance in the SaaS industry.
As more software vendors join G2’s marketplace, the platform’s value to both buyers and sellers continues to increase.
CEO’s Focus on Growth
Godard Abel’s leadership has been a driving force behind G2’s success. His commitment to product innovation and customer-centric solutions has allowed G2 to remain competitive in a crowded market.
“We’re not done yet,” signaling that G2 has even more plans for future growth and expansion.
-Godard Abel
Abel’s vision for G2 goes beyond simply being a review platform. His focus on diversifying revenue streams and expanding the company’s product offerings has positioned G2 as a leader in the SaaS space.
With the launch of G2 Track and the continuous expansion of its marketplace, G2 is well on its way to achieving its goal of surpassing even more than $113M ARR.
Key Takeaways:
- By diversifying G2’s revenue streams, maintaining strong leadership, and leveraging investor support, G2 has managed to scale rapidly.
- With a focus on innovation and customer needs, the company’s journey to $100M ARR in 2024 demonstrates the power of strategic growth in the SaaS industry.
