Donovan: R&D spending variation no longer predicts SaaS valuation multiples
Jeremey Donovan · How We Help ScaleUps Measure Efficient Growth · May 4, 2023 · at 10:18
This episode carries Jeremey Donovan's own address, with nobody on the show putting questions to them. It still counts as said, and it is kept out of every score on their page.
Jeremey Donovan presents regression analysis at SaaSOpen showing how the drivers of public SaaS valuation multiples shifted following the 2022 market downturn.
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“Interestingly enough, R&D, which the more you spent on R&D before, the stronger your multiple was, because you were investing for growth, now it's neutral. That very, like, there is no predictive, very, The variation in R&D spend does not have any predictive value on your multiple.”
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