This analysis from SaaS Capital describes the Valuation levels for SaaS companies in 2021, and their recent evolution. I found it really interesting and wanted to share with you.
It’s pretty clear that SaaS companies have valuation levels that are typically above other type of businesses.
The median SaaS valuation multiple for public B2B SaaS companies stood at 16.6x run rate ARR on December 31, 2020. And in Q1 2021, and is now at 17.6x, at the highest point ever. The lowest valuation multiple out of all public SaaS companies is 3.4x ARR. So, even the “losers” in this market are doing fine!…
The estimated valuation multiple for private SaaS B2B companies is currently at 12.0x ARR. All private valuation multiples we have seen in the second half of 2020 remained in the historic range of 3x to 10x ARR, depending on company metrics.
Although SaaS clearly continues to be a very bright spot in the broader economy, SaaS companies have specificities in their business model that deserve specific tactics and approaches when it comes to Pricing, to Lead Generation, and to Sales. As you know, at We::NXT, we have a deep understanding of SaaS and Cloud markets. And we will be happy to help you accelerate growth through our Sales Acceleration Services in a way that is always customized for your company!