Blog - Practical Venture Capital

PVC SaaS Index™ | Q1 2021 Update

Aman Verjee

Public Markets
PVC SaaS Index

Practical Summary: The 112 companies in our PVC SaaS Index™ trade at just over 12x EV / LTM revenues, just above the recent historical range of 8-10x, although down from its high last quarter of 13x. A basket of 53 recent SaaS IPOs (companies that went public post 2016) are now trading just above 19x

PVC SaaS Index™ | Valuation Update Q2 2020

Aman Verjee

J-Curve
Liquidity
Secondary

Companies are projecting to grow revenues this year at about 30% YoY and sport a forward multiple of about 12x.

VC Fund Secondary: Buy the Winning Ticket at Halftime

Dave McClure

Stephanie Shorter

J-Curve
Liquidity
Secondary

Skip the J-curve. Buy at a discount. Cut the VC fund in half.

History of Public SaaS Valuations | PVC SaaS Index™

Aman Verjee

IPO
Public Markets
PVC SaaS Index

Investors are paying higher multiples today for SaaS companies than at any other time in public SaaS trading history.

SaaS IPOs are Outperforming on the Rebound

Aman Verjee

Downturn
Public Markets
PVC SaaS Index

SaaS as a category has been among the leaders helping the market to retrace much of its losses of the pandemic-prompted downturn.

SaaS IPO Benchmarking | ARR at IPO

Aman Verjee

Public Markets
PVC SaaS Index
Valuation

Revenue growth strongly predicts valuation multiple at the time of IPO. Since 2017, SaaS IPOs trade at an average 18x LTM revenues.