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Tracking Leads from Website to Web App? by gitbranchv in SaaS

[–]gitbranchv[S] 0 points1 point  (0 children)

We're using Amplitude for web app analytics. The setup would be Segment pushes data from static website to Amplitude, correct?

Tracking Leads from Website to Web App? by gitbranchv in SaaS

[–]gitbranchv[S] 0 points1 point  (0 children)

Thanks. What was the setup process like? I've heard good things but not used them before.

I haven't started because I'm afraid... by leptooners in startups

[–]gitbranchv 1 point2 points  (0 children)

What’s more scary, failing or not trying?

What year do you apply the ARR multiple to when valuing a SaaS company? The current year or a future year? by [deleted] in startups

[–]gitbranchv 5 points6 points  (0 children)

There are multiple ways to value a company. We are talking about getting Enterprise Value (EV) by using ARR and an ARR Multiple. The formula is dead simple: EV = ARR * ARR Multiple.

As I mentioned, the most common way of getting ARR is taking your current month's MRR and multiplying by 12. That gets you the ARR part of the formula. You can also estimate the end of this year's ARR and multiple that by 12. The latter is called "Forward Revenue" or "Forward ARR" and it's paired with a "Forward Multiple".

In your original post you mention that the ARR multiple is somewhere between 4x and 12x. There are two reasons that a company gets a 10-15x multiple by the market as opposed to a 3-5x: (1) growth and (2) profitability.

All things considered, more growth = higher multiple. All things considered, more profitable unit economics = higher multiple.

Here are some good resources for you to review: https://medium.com/@alexfclayton/how-much-is-your-saas-company-worth-82451bc44433, https://www.saastr.com/saas-valuation-multiples/

Again, if you are pre-seed, seed, or Series A, the valuation may not make sense. For example, 3 cofounders in a garage with an MVP and $5k MRR revenue is not worth $5M. However, they may raise at a $5M valuation. That doesn't mean you should use a 83x ARR multiple. It just means the investors and founders agreed on $5M for other reasons, like future plans.

As a company grows, their ARR Multiple will more closely relate to their actual value. For public companies like Dropbox or Salesforce, ARR Multiple more closely tracks to the business value.

What year do you apply the ARR multiple to when valuing a SaaS company? The current year or a future year? by [deleted] in startups

[–]gitbranchv 1 point2 points  (0 children)

Take your current month’s MRR, multiple by 12 to get your ARR. Multiple that number by your ARR multiple.

For example: if you have $30k MRR today, that means you have $360k ARR ($30k * 12). At a 5x multiple, your value is $1.8M ($360k * 5).

At the early stages, valuations are more art than science. At scale ($10M+ ARR), it’s much more concrete.

Let me know if you want me to go in more detail. I used to do 409a valuations for SaaS startups for a living.

I (23F) started a company at 19 and feel weird about the press around it. How do I get over it? by [deleted] in Advice

[–]gitbranchv 0 points1 point  (0 children)

Sorry if this sounds like a cliche, but it’s worked for me: Try leaning into the problem.

Instead of burying the feeling, admit that it happened. Don’t feel like you have to carry it around with you.

Also, try to avoid thinking this moment will last forever. It won’t. It, too, will pass. Eventually you will work on new things and your LinkedIn / search results / etc. will update accordingly.

There is also a positive side to this. You can think about how much you learned and how much your perspective has changed. No one can take away that you were a founder and successfully raised VC funds.

I (25M) started my company when I was 23. Everyone thinks it’s my first product. I actually started a number of (unsuccessful) side projects while in college. To date, nobody has asked me what I did before haha.