2022 Q1 SaaS Valuation Update
1 min
A lot has been said about SaaS valuation multiples in the last few months. However, we like to back this up with data.
As every quarter, we identified and kept an eye on over 100 of the most influencing SaaS companies around the world to track their valuation and performance.
This time, we have observed a fundamental change in investor behavior and 6 other striking conclusions to help you understand the dynamics behind the falling SaaS valuations since Q4-2021.
Main takeaways:
- $ 816 Billion of Market Cap of the SaaS Index has evaporated in 5 months, fueled by rising US Treasury Yields.
- Investors in public SaaS companies no longer reward growth at all costs but have started prioritizing capital efficiency in determining public valuation multiples.
- The RSQ of our model has inclined from 0.53 to 0.72, which may resemble that valuation multiples for SaaS have rationalized since Q4 2021.
Read the full report below: