What advice do you give SaaS founders whose revenue multiples have compressed from historic highs?
Replied byJason Lemkin
Founder & CEO at SaaStr
Niche: SaaS
Revenue: Approx. USD 2.5 Million/month
Location: Palo Alto, California, United States
Started: 2012
Accept that three-to-six-times revenue is the historical norm for public software companies and stop anchoring your financial planning to the 2021 bubble. Focus relentlessly on net revenue retention, capital efficiency, and gross margin health; companies that generate real free cash flow and predictable expansion will always command premium valuations.
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