Shepard: SaaS is valued on profitability and founder independence, not revenue
Luke Shepard · Startup Acquisition Stories With Luke Sheppard, Founder of Revive Ratings · Mar 26, 2024 · at 7:16
Luke Shepard, founder of Revive Ratings, discusses the valuation advice he received from a mentor prior to selling his micro-SaaS company on Acquire.com.
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“I feel like we're always told when you start a SaaS business, like, oh, you're going to be valued off of profit, off of revenue, right? You're going to get three to five times whatever your revenue is and, like, just, I mean, yeah, that's true in some cases, and maybe in a different economy, but, like, He was, he just told me like, no, you're going to be valued off of profitability and just the ability for the business to run without you.”
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