The 57% Drop in SaaS Valuations

This post is by Tomasz Tunguz from Tomasz Tunguz

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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.

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