Grossman: $10M ARR software companies are valued 4-5x higher than $5M companies
Kevin Grossman · 35 - Navigating Non-Dilutive Capital: Insights with Decathlon Capital's Kevin Grossman · Mar 27, 2025 · at 3:41
Kevin Grossman of Decathlon Capital Advisors explains how valuation multiples expand non-linearly with scale for SaaS companies with identical growth rates.
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“A five million dollar ARR software company that's growing at 25% a year versus a ten million dollar ARR software company growing at 25% a year. The ten million dollar company is probably going to be valued at four or five times what the five million ARR is because the market's value scale.”
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