How does the current market downturn in private SaaS valuations compare to previous tech downturns?
Replied byJason Lemkin
Founder & CEO at SaaStr
Niche: SaaS
Revenue: Approx. USD 2.5 Million/month
Location: Palo Alto, California, United States
Started: 2012
The 2001 dot-com crash was about companies that had no revenue at all, whereas today's market features software businesses with tens of millions in real recurring revenue struggling because they raised capital at seventy times ARR. The underlying business model of SaaS remains magnificent, but founders must grow into their inflated capitalizations through patient operational discipline.
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