The State of Go-to-Market in 2025 (ICONIQ)

Summary

• Mid-stage companies ($25M-$100M ARR) see an uptick in YoY ARR growth: 93% YTD 2025 vs. 78% 2023 H1.p.5
• AI-Native companies at $100M+ ARR convert free trial or proof-of-concept at a 56% rate vs. 32% for other companies.p.5
• Pipeline coverage declined to 3.6x YTD 2025 from 3.9x in 2024, while quota attainment of ramped AEs held steady at 58%.p.5
• Sales-sourced opportunities win 35-40% and Channel-sourced 25-35%, versus ~20% for Marketing-sourced.p.5
• Common internal AI use cases include meeting transcription / analysis (71%), lead generation (61%) and campaign and content creation (58%).p.6
• Sales funnel conversion rates are up ~5 percentage points for companies with high AI adoption in GTM.p.6

Key insights

1. Conversion to Closed-Won is down ~5-10 percentage points YoY.p.5
2. Contract length is approximately 2 years on average, with a shift toward 1-year deals.p.5
3. Net dollar retention is relatively flat at 100-115%.p.7
4. Companies under $25M ARR with high AI adoption have a ~10-percentage point lower allocation of Post-Sales FTEs.p.6
5. The top three challenges of implementing AI in GTM are cost of AI tools, deploying AI at scale, and privacy/security concerns.p.6