SaaS company valuation
- Post-money valuation
- $2,500,000
- Pre-money valuation
- $2,000,000
- Founders and earlier holders keep, percent
- 80
Every figure on this page is computed from the inputs you enter, by the method stated below it, including the multiple, which is yours. MultiplesBook publishes no multiples, no comps and no survey: the defaults are a worked example to replace with your own.
A SaaS company valuation is asked about by two different people: the founder pricing a round, and the owner of a small subscription business wondering what a buyer would pay. The founder's number comes from the round itself, money raised over equity given, and no multiple enters into it. The owner's number comes from earnings or recurring revenue at a multiple the market for businesses that size is paying, which is not the multiple in a public-market headline. This guide is about keeping the two apart, and the free startup valuation on this site works the round with no account.
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The round sets the price, and the price is not the business
When a startup raises money, its valuation is what the round implies: money raised divided by the equity given is the post-money, and the pre-money is that less the money raised. It is a price agreed between two parties for a slice, and it says what they agreed, not what a buyer of the whole company would pay.
The small SaaS business is valued on earnings, at a private multiple
A subscription business an owner runs and might sell is valued the way other small businesses are, on its earnings at a multiple buyers of businesses that size are paying, with recurring revenue quality moving the multiple within that range. The public-market revenue multiples in headlines belong to companies a thousand times larger and should not be applied; the tool takes the multiple you were quoted.
Keep both numbers, and keep the date
A founder's post-money and an owner's earnings valuation are different questions with different answers, and both move. The paid plan files each valuation against the business and the date, so the next round or the next offer starts from what the last number was and why.
SaaS company valuation: common questions
How is a SaaS startup valued in a funding round?
By the round: the money raised divided by the equity given is the post-money valuation, and the pre-money is that less the money raised. The startup valuation on this site works both from the two figures on the term sheet, with what the founders keep beside them.
What multiple does a small SaaS business sell for?
Whatever buyers of businesses that size are paying at the time, which this site does not publish; it is a multiple of earnings or of recurring revenue quoted by brokers who have closed those deals. Enter the multiple you were quoted in the small business valuation and the tool applies it.
Can I use a public company's revenue multiple?
Not for a small business. Public multiples price liquidity, scale and growth a small company does not have, and applying one produces a number no buyer will pay. Use a multiple quoted for businesses your size, and treat the public figure as a ceiling that does not apply to you.
Will it do what you need for SaaS company valuation?
Tell us what valuing your business needs and we will tell you straight whether MultiplesBook Pro does it today, whether it is coming, or whether you are better off with a valuer. A person reads these and replies.