PVC SaaS Index: Valuation Update Q2 2020

A Practical Summary:

• Practical Venture Capital has developed a new proprietary index of publicly traded SaaS companies — the PVC SaaS Index™ — which tracks 103 US-listed companies with software-as-a-service (“SaaS”) business models
• These companies have generally traded at 5-8x enterprise value / trailing revenues (“EV / LTM”) since 2013, with a brief period below (the “SaaS Crash of 2016”) and a recent run above
• The median EV / LTM multiple in this index dipped to 7.3x as the market teetered in March, but it…