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Series A SaaS Startup Benchmarks for 2018

Tom Tunguz

How far along was the typical SaaS Series A in 2018? The chart below shows a representative sample of SaaS Series As’ ARR and projected ARR growth rate for 2018. The median business was at $1.8M in ARR and growing at 250%. Breaking this down a bit more into quartiles, the ARR quartiles were: 25th.

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2018 SAAS Private Survey Results- Part 1

For Entrepreneurs with David Skok

For the seventh year in a row, we’re proud to work with KBCM Technology Group (formerly Pacific Crest Securities) to share results from a survey of ~385 private SaaS companies. Thank you to the readers of forEntrepreneurs who participated in taking the survey!

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2018 Private SAAS Company Survey- Part 2

For Entrepreneurs with David Skok

We recently released Part 1 results of our private SaaS company survey in partnership with KBCM Technology Group (formerly Pacific Crest Securities). This is the sixth annual survey we’ve produced together, which provides data to help SaaS companies benchmark their performance against their competition.

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Why IPOs, Direct Listings, and SPACs Will Flourish in Startupland

Tom Tunguz

It hovers around 5x until 2018, then spikes to 8x, and despite some volatility, reaches its current zenith at a bit more than 10x. In 2017 and 2018, the median high-growth private company raised at a higher forward ARR multiple than in the public markets. The valuation multiple has doubled in about two years. This is a critical shift.

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5 Interesting Learnings from Datadog at $1.2 Billion in ARR

SaaStr

In 2018, most Datadog customers used 1 product. 28% of Datadog’s customers use 4+ products, but they make up the vast majority of revenue: And 75% use 2 or more products, up from just 15% in 2018: #4. More product, more products, more products. 10 new products this year. Customers don’t buy all the products at first.

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SaaS Multiples Are At a 3+ Year Low. Where It Goes From Here.

SaaStr

The Bear Case: Multiples are still elevated compared to the pre-2018 period. So they can fall another 20%-30% just to revert back to that mean: SaaS was already on a tear starting in 2018. The argument here is that SaaS even in 2018 was overvalued. You can see a lot of VCs and others talking about this on Twitter.

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Were the “Covid Multiples” in SaaS Just an Anomoly?

SaaStr

And so, Cloud multiples have rationally fallen back to where they were in 2018 and 2019. The argument here is multiples have fallen too far, since the best SaaS and Cloud companies are growing so, so much faster than in 2018 and 2019. Multiples exploded when we all lived in the Cloud, quarantined in whole or in part in the Cloud.

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