The 57% Drop in SaaS Valuations


This post is by Tomasz Tunguz from Tomasz Tunguz


Click here to view on the original site: Original Post




What a difference a month makes. I wrote a post on January 10, 2016 called The Downward Pressure of Public Markets on Startup Valuations that depicted the slow decline of SaaS multiples in the public markets. Since then, multiples have compressed markedly. The chart above shows the forward revenue to enterprise value multiple of all public SaaS companies. Remember the heyday in March 2014? We’re 57% below that high at 3.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.