French Tech: what are the valuation multiples of start-ups?

Le multiple médian d'une start-up du SaaS s'élève à 4,7, d'après les données récoltées par Avolta Partners.

Posted Oct 3, 2022, 7:30 AMUpdated on Oct 3, 2022 at 7:34 am

Tell me how much you lift and I’ll tell you how much you are valued. Usually, an auditor applies a multiple of EBITDA to determine the valuation of a “traditional” company. As the majority of start-ups are not profitable, it is not possible to proceed with the same method of calculation. To define the value of a start-up, investment funds rather apply a multiple of turnover or ARR (acronym for annual recurring revenue), one of the key indicators in the world of subscription software ( SaaS).

In a study entitled “VC/M&A Multiples France 2022”, unveiled exclusively by “Les Echos”, Avolta Partners, an investment bank specializing in tech, reveals the multiples practiced in French Tech over the past twenty-four months. “We do it over twenty-four months to take into account as many operations as possible and therefore have a solid base”, specifies Arthur Porré, co-founder of Avolta Partners, who provides an analysis by sector and by type of economic model.


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