One of my favorite sources of information for public SaaS (Software-as-a-Service) comparables is Bessemer Venture Partners.
If you are a retail, institutional, or strategic buyer contemplating an investment in the SaaS sector, here is what you need to know.
Expect to pay an average of 8.0x for every dollar of revenue the company has. If the target is more or less expensive than that, figure out why.
According to BVP, the key business metrics to focus on are: 1) Committed Monthly Recurring Revenue (CMRR), 2) Cash Flow, 3) CMRR Pipeline (CPipe), 4) Churn, 5) Customer Acquisition Cost (CAC), and 6) Customer Life Time Value (CLTV).
Here is how all 38 stack up against each other.
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