This is a complex and often opaque process. There has been a lot written about and discussed. The rule of thumb is that a SaaS that shows definite growth trajectory can expect a 10X revenue x rate of growth x net renewal rate, as post money value, give and take.
David Cummings has written about 5 variables that can possibly provide a more nuanced valuation that is more likely to stick. So you need to include variables like gross margin and market sentiments drawn from Public SaaS companies and their market multiples.
Read both posts to get a directional indication of what you can expect. I wonder if there are variance to be factored in at various stages of the company (Series A/B etc.) or TAM (potential for growth)?
What is your take?
Where I learnt this #415
5 Variables for a Quick SaaS Valuation
https://davidcummings.org/2020/02/08/5-variables-for-a-quick-saas-valuation/
Premium SaaS Metrics Required for Premium SaaS Valuations
https://davidcummings.org/2020/01/18/premium-saas-metrics-required-for-premium-saas-valuations/
