The valuation of a company expressed as a multiple of its revenue — the primary valuation lens for growth-stage software.
The valuation of a company expressed as a multiple of its revenue — the primary valuation lens for growth-stage software.
A company valued at $100M with $10M in ARR trades at a 10x revenue multiple. Multiples vary enormously by growth rate, gross margin, and market conditions. In frothy markets, top-decile SaaS has traded above 30x; in tighter markets, 5–8x is typical for solid businesses.
The multiple you get depends more on growth rate than on absolute size — a startup growing 3x year-over-year commands a much higher multiple than one growing 30%.
Investor directory · Fundraising library · Articles A–Z · Company funding database