Comment by curiously | Hacker News Reader

Comment by curiously | Hacker News Reader

Let's take a look at their pricing plan

https://mixpanel.com/pricing/

I wonder how much of their MRR X 12 months is multiplied by to reach $865M valuation.

    AVG MRR X 12 X ?? = $865,000,000

I can't fathom what the ?? will be, it would have to be significantly crazy. It isn't 1000.

Is it 100 ($8.6m ARR) ? Is it 50 ($17.2m ARR) ? Is it 25 ($34.4m ARR) ?

What is the average valuation multiple for SaaS? Is it higher or lower than other Startup models (consumer, yearly subscription)?

If one was to replicate a similar valuation with their SaaS what would it take?

Their average MRR per customer is four or five digits (see slide eight), and they have 2,814 paying customers according to their homepage, so their MRR is at least ~three million, which puts their ARR at at least 36 million. This implies a multiple of 25 at most. (I think 20 is a common multiple for SaaS companies at this stage.)

Do you remember groove? They had 14 as a multiple for their SaaS but it could've been at the time they had 70k MRR.

ARR at 36 million....and 25 the multiple...gotcha now I have a solid number to gun for.

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