Revenue Multiple
topic on 5 shows · 8 statements across 8 episodes
BG2 Pod 
the Official SaaStr Podcast 
Starter Story 
Top Founders 
20VC
8 statements about Revenue Multiple, every show
Khan: Startups should IPO earlier and revenue multiples are a meaningless metric
“I'm a big proponent that companies should go public earlier than later, and no revenue multiple is a BS multiple.”
Levie: Applying identical multiples to 5% and 90% margin businesses is crazy
“If you're like one click or two clicks removed from Sandhill Road and Sandhill's equally to probably blame at certain points, you're sort of like, oh, tech enabled, everything should all get a six or 10 X revenue multiple when the underlying economics of this …”
Lanng: Startup revenue multiples dropped from 40-60x down to 7x
“We moved from a world where there was 40, 60 X revenue multiples to a world where there's seven X, right?”
Zullo: VCs and Founders Lost Financial Acumen Chasing Revenue Multiples
“Founders and investors, both we've kind of slipped away from financial acumen as investors, where it just became really focused on revenue multiples.”
Smale: Small businesses sell on profit multiples, not revenue
“For most small businesses, so probably everyone listening, you generally don't get a revenue multiple. There's a lot of misinformation out there around valuations, but revenue multiples are uncommon. You generally get a multiple of profit.”
Prados: VC software valuation multiples max out at around 7x revenue
“Like the economy right now, everybody's puckering up. It's like seven times revenue is, is where they want to kind of max out at.”
Shen: Public cloud multiples are trading around 10x in 2019
“Well, today, revenue multiples are quite hot. It's a great time to fundraise. Roughly at 10 times revenue multiples in the public markets.”
SaaS startups trade at 4x-6x revenue with investors taking 10-15 percent
“We look at the basic economics out there today, you know, you would hear somewhere between four and optimistic six times on revenue, right? And you got to imagine that an investor is going to want to take no less than 10, but probably closer to 15% in that rou…”