This valuation data is eye-popping. Imagine you’re arguing with a buyer, your board, or an investor about your valuation. What gives you the most leverage?
Comps. Other recent deals.
There has never been a central database of private valuations focused on SaaS. My friend Nathan Latka is changing all that with his new report.
Official SaaS Valuation Report (100+ examples)
You can get any valuation you want under one condition: You have to have comps to back it up. An investor, buyer, or friend won’t listen to what you think you’re worth. But if you can say:
“I just pulled comps and here’s what they say”
Your leverage increases.
The webinar on March 4th is about getting you leverage. You’ll get 100+ examples like these:
- Typeform raised $35m at a $300m valuation in 2017 with $20m in revenue. They passed $48m in revenue last week topping $800m valuation. 16.6x multiple.
- GetRoute raised $50k on a SAFE with $4m cap this year with $128k in revenue. 31x multiple.
- Recreation management software Amilia hit $8m and valuation of $100m last month. 12.5x multiple.
How To Get 20x Multiple or Higher
Why does one company with $5m in revenue get a 2x multiple, while another company at $5m gets a 20x?
Companies valued at 20x+ are focused on 3 metrics:
Growth: Optimizely raised at a $600m valuation in 2019 with $110m in revenue (5x multiple) with yoy growth of 7%.
The faster growing Greenhouse.io got an $820m valuation on $86m in revenue (10x multiple) with yoy growth of 20% yoy. Growth will always matter and should be managed if playing the valuation game.
Net Revenue Retention: Gong’s net revenue retention is 150% compared to QuickOrder’s 131%. Gong recently commanded a 37x multiple compared to QuickOrders 7x. Growing net dollar retention is key factor in valuation growth.
Speed of payback: Founder that get paid back fast are smarter capital allocators. They avoid dilution because they have no cash gap. They don’t have to wait to recover CAC.
Amilia has a 14 month payback and is raising at a 13x multiple. OnCallHealth has a 6 month payback and is valued at a 20x multiple. Figure out how to get your cash back faster.
The holy grail of high growth, 140%+ net dollar retention, and sub 6 month payback period puts your startup in the top tier.
You should command a valuation in the 20x+ range.
Nathan upgraded his zoom plan (hit max last time) to 500 live. Will hit that quickly. Register today to get your spot (and registration bonuses):
When: March 4th at 11am PST
What to expect: 500+ founders hanging out learning from each other (and lots of data)
The energy on Latka’s last webinar was intense. Top CEO’s jumping in sharing details they never share (look at hands raised in screenshot below)
When you register
, you’ll get these registration bonuses:
- Invite to Latka SaaS slack group (990 strong!)
- Excel file featuring 100 net dollar retention comps from other founders
Fastest growing companies of 2020 report
I’ll be there! See you live.