How Revenue Multiples Really Fall After Each VC Round
SaaStr
MARCH 1, 2024
So Michael Ho did an analysis here of Carta valuation data in a way that IMHO visualizes in a way so many founders miss. And misunderstand. At the end of the day, the top SaaS companies IPO and end up trading at “standard” ARR multiples. Today, on average that’s about 6x. Not great, but it is what it is. But they don’t start there. Seed rounds can’t really be done at 6x ARR typically.
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