Overheard a VC say SaaS valuations are back to 2017 levels

Was getting coffee last Thursday and caught two investors talking at the next table. One said they just funded a B2B analytics company at 5x ARR. That used to be 12-15x two years ago. Made me think about how we priced our own seed round last summer. We might have left money on the table but honestly I like the lower bar. Less pressure to grow at all costs. Anyone else adjusting their fundraising plans around these new numbers?

2 comments

2 Comments

the_jason12d agoMost Upvoted

Buddy of mine took 4x ARR last month and was thrilled.

nancy_davis11d ago

It's wild how different everyone's risk tolerance is, right? @the_jason I mean, 4x ARR sounds insane to me personally, but I guess if you've got the stomach for it and the business is solid, why not. Idk, maybe it's just me but I feel like taking that much leverage would keep me up at night no matter how good the numbers looked. People act like the sky's the limit until the market hiccups and suddenly that multiple feels way heavier than it did on paper.