I’ve been getting some questions lately about valuation.
A rule of thumb used to be a 4-6x multiple on ARR for B2B SaaS.
Feels like this is way out of wack today. eg if a company is doing $1M ARR, then taking $1-2M on $4-6M doesn’t make sense. More like $10M pre money valuation at the low end.
I’m not even talking about SF valuations vs elsewhere, just thinking through what the rough guidelines are.
If anyone has pointers to Series A multiples that would be a helpful starting point.