Gross MarginCybersecuritySeed
Gross Margin for Cybersecurity at Seed (Transactional)
2026 data · Sample size: 220 · Source: First Round State of Startups 2026
25th %ile
45.9%
Median
50.4%
75th %ile
54.2%
90th %ile
57.2%
▬Trending stable year-over-year
About This Metric
Revenue minus cost of goods sold, expressed as a percentage. For SaaS, this is typically 70-85%.
(Revenue - COGS) / Revenue × 100
Higher is better · Unit: percentage
How to Improve
Migrate to cloud-native infrastructure to reduce COGS. Automate support with AI to reduce human cost per ticket. Negotiate volume discounts on third-party APIs.
Ehsan's Analysis
Cybersecurity companies at Seed stage should track this metric weekly with a 4-week rolling average. The spread between p25 and p75 is where competitive advantage lives. Focus on moving from median to top-quartile before chasing top-decile performance. The compound effect of consistent 5% monthly improvement puts you in the top 10% within 18 months.
J.
Ehsan Jahandarpour
AI Growth Strategist & Fractional CMO · Forbes Top 20 Growth Hacker · TEDx Speaker · 716 Academic Citations
Frequently Asked Questions
What is a good Gross Margin for Cybersecurity at Seed?
The median Gross Margin is 50.4%. Top-quartile companies achieve 54.2%. Aim for top-quartile to be competitive.
How does Gross Margin change by company stage?
Gross Margin improves as companies mature. Later-stage companies benefit from scale and optimization.
How to improve Gross Margin in Cybersecurity?
Focus on the primary drivers specific to Cybersecurity. Track weekly with a 4-week rolling average and iterate on the biggest lever.