TLDR Founders · MISCELLANEOUS
ARE REVENUE MULTIPLES A THING OF THE PAST?
Summary from the TLDR Founders newsletter
Private equity firms have shifted their valuation approach for SaaS companies from revenue-based to future EBITDA-based, influencing venture capitalists to follow suit. This change emphasizes the importance of demonstrating future cash flow potential, efficient capital use, and competitive processes to maximize company valuations at various stages of fundraising or sale.