Clouded Judgement: New Rules For a New Game
The article argues that traditional SaaS startup playbooks—emphasizing sequential spending, milestone-based funding, and careful planning—are now outdated in greenfield markets where speed and iteration matter more than polish. It presents current SaaS valuation multiples and operating metrics showing that companies must move faster and in parallel across GTM, product, and hiring to avoid being leapfrogged by faster competitors, fundamentally reshaping how successful founders and investors approach startup scaling.
Metrics in this report
72months
median
Public SaaS companies on gross margin basis
5.3x
median
All public SaaS companies analyzed
24.3x
median
Top 5 public SaaS companies by market cap
21.8x
median
High-growth SaaS companies (>25% NTM growth)
8.5x
median
Mid-growth SaaS companies (15-25% NTM growth)
4.1x
median
Low-growth SaaS companies (<15% NTM growth)
18percent
median
Public SaaS companies
16percent
median
Public SaaS companies
76percent
median
Public SaaS companies
14percent
median
Public SaaS companies
11percent
median
Public SaaS companies
108percent
median
Public SaaS companies
-4percent
median
Public SaaS companies
24percent
median
Public SaaS companies
38percent
median
Public SaaS companies