      SaaStr · 2014-04-13
      · 4435d
    

SaaS Market Valuations and the Current Lack of Fear in Enterprise Software

Jason Lemkin discusses the SaaS market's valuation trends on NBC's Press:Here, highlighting the absence of investor fear despite modest market corrections. He notes that companies like Dropbox and Box are raising significant capital and achieving high valuations on limited revenue, with investors showing confidence in growth trajectories. Lemkin argues this risk-free sentiment makes it an excellent time for SaaS entrepreneurs.

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Metrics in this report

Capital Raised

~$1,000,000,000$

almost

Dropbox debt and equity raised in 2014

Cash Runway

>12months

barely more than

Box's cash reserves relative to burn rate

Revenue Growth Multiple

20-40x

range

Expected growth from current revenue to IPO justification

Startup Valuation

$300,000,000$

exact

SaaS startup valuation on limited revenue