Morning Hunters ☕ (can’t remember last time I was up at 5am PST but couldn’t sleep!) Only continue reading if you’re building a SaaS project…. You “hustle and hack” and before you know it you’re doing $20k/mo in revenue. It happened to me back in 2013 with Lujure (now Heyo). This was my first "million dollar year" (well almost... $939k)

2013 tax return from my first SaaS, Lujure.com (Heyo now) As we grew we were getting $6,500,000 acquisition offers including this one… I had no idea if I should take it or not:

2011 acquisition offer I got for $6.5m @Mubs has sold tons of side projects too (Several started here on PH!) We built the SaaS Valuation Tool to: · Help you get a real idea of what your SaaS project is worth today · Give you 463 raw valuation data points from other founders · Show you quick ways to double your valuation based off current market trends Hint: Its not a mathematical formula… You can get a premium valuation with a great story. People will believe your story and “pay up” for your vision if you can point to historical metrics that prove you can execute. The blend of metrics + story is how you get a 40x multiple on your current annual revenue. To build this tool we used 463 real SaaS valuations from the last 12 months to train the calculator:

We collected most of these valuations by interviewing founders directly:

Copado CEO Ted Elliott: “That round was $8m on a $35m valuation” (source minute 23:45 here) Valuations are very different depending on what you’re doing: Seed Series A Selling the whole business Private equity deal etc... To account for this, we tagged each deal with “event type”:

You see raw data on your Founderpath account labeled by event type so you can sort/filter You can download the raw excel file if you want an easier way to sort/filter. Steps to get your valuation:

Visit the landing page and signup for free
Connect your stripe account (we have 14 other integrations too)
Get your valuation in under 37 seconds

We give you 3 valuations based on what your plans are: Raising from a VC: The highest multiple – they’re paying for future growth. Selling a portion: Called a secondary, will get you a middle valuation. Selling 100% of your company: To a private equity firm will get you the lowest multiple – they’re generally paying for historical revenues, not future projections In addition to your valuation, we’ll tell you what metrics to focus on to increase your valuation. For example, the highest valued software projects today are really good at selling more to current customers (Net Dollar Retention, NDR). 135%+ NDR will get you a 30x + valuation multiple on your current annual recurring revenue (ARR). We’ll also share 3 tactics we think you should do to drive more revenue including:

What email copy to use on your best customer to get them to leave a review to help your ranking on review sites like G2, Capterra, and GetAccept
Pricing changes you could easily make (but are nervous about) to 2x revenue fast
Fast ways to decrease churn even if your convinced you’re in a “high churn” product category

The full SaaS Valuation Calculator took 292 coding hours to build, 37 design hours, and over 10 hours of user testing (live with alpha-users).

Founderpath team alpha-testing valuation calculator with SaaS founders in NYC We plan to charge for this starting on January 5th but wanted you guys to be able to get an early look with a free trial today: founderpath.com/products/valuations Mubs and I are hanging out in this PH thread all day today. Excited to hear your feedback and answer questions! (be back in 30 seconds - grabbing more coffee) 🎉🐱🐱🎉🐱🐱🎉🐱🐱

Nathan Latka

Founderpath

Maker

3yr ago

Adam Marx

How Many People Have Voted?

@mubs @nathanlatka Excited to see this here today and intrigued to see what the usage will be as we get into the new year! 🤔😃 I think that a simple tool like this is a great way for builders to balance offloading their projects with the desire to potentially keep building them for future dividends. Mubs, we should run some of your older projects through this and see where there might be some hidden value! 😆 Great build and launch! 😎🚀

@mubs @adammarx13 thanks Adam! 🐱

Mubashar Iqbal

@adammarx13 Thanks Adam. Excited to give founders a clearer understanding of the value they are already creating.

Vishal Srivastava

@mubs @nathanlatka This is a much needed tool, esp early in the cycle. It's not just about raising money or selling but also to understand the value you have built/are building. The distinction between valuation when raising and selling is important. I have seen a l lot of Indie founders trying to sell their SaaS at VC valuations and getting no offers.

Lilia Tovbin

@mubs @nathanlatka Congrats on launching this awesome tool, no doubt to become the go-to for SaaS founders for years to come. Excited to see its evolution with more data flowing in. FounderPath FTW 🚀

Hello Makers, It's been a long time since my last launch, but we've been very busy at Founderpath building tools for SaaS founders. You may not be looking to sell your company, but there are plenty of reasons to know the valuation of your company is, and how you can increase the valuation! Using data from over 400 recent priced raises, and sales we've developed a system for calculating a valuation for SaaS. Checkout and let me know what you think! 👇

Sujan Patel

mailshake

Amazing! Love that Nathan and Mubs are building tools for SaaS masses. A more in-depth review to folllow..still playing around with the calculator

@sujanpatel *eagerly awaits in depth review/feedback* Thanks Sujan!

Founderpath

Raise $10k-$1m in 72 hours, free revenue analytics

Raise $10k-$1m in 72 hours, free revenue analytics

Founderpath

Raise $10k-$1m in 72 hours, free revenue analytics

Raise $10k-$1m in 72 hours, free revenue analytics

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