CrispaPre-Money · Issue 01
Pre-Money · Issue 01 › Valuation fundamentals
Valuation fundamentals

The three types of valuation multiples

Each has its place, but at different stages of the journey. They can be quite far apart, so mixing them up can cost you the deal or clog your cap table.
By Thomas Helms
4 min read · Pre-Money, Issue 01 · Updated September 2026
The short answer: there are three types of valuation multiple. The fundraising multiple applies to venture funding rounds, the trading multiple is what the market currently pays for publicly traded SaaS companies, and the M&A multiple is derived from private market transactions. Indicative ranges (EV / Revenue or ARR): Seed 10–40x, Series A 10–25x, Series B 5–15x, Series C onwards 3–10x, trading 3–14x, M&A 1–10x.
In plain termsARRwhat you have contracted to earn, forward from a point in time. More on how it differs from revenue in The value-creating finance function.
In plain termsLTM revenuerevenue over the last twelve months.
The typical ranges for the three types of multiples compared
Enterprise Value (EV) / Revenue or ARR
Tap a type to isolate it.
Sources: Crispa analysis, SaaS Capital, SEC filings, SEG reports, SVB reports, Carta, Web search

01 · The fundraising multiple

These apply to venture funding rounds, where a company has at least 1–200k EUR in ARR.

The range is very wide for Seed rounds and narrows as the company matures. The ranges below are indicative. Individual rounds can be above or below, depending on growth rate, business model, geography, etc. Denmark often sees lower multiples than elsewhere. Nonetheless, these are typically well above trading and M&A multiples, which unsavvy investors can sometimes find hard to stomach. But the bet is that the exit will happen based on a revenue number so big it more than makes up for the ‘step down’ in multiple. Fundraising multiples are based on ARR.

02 · The trading multiple

This is what the market currently pays for publicly traded SaaS companies.

If a startup is shooting for an IPO, these multiples will be what dictates at least the initial outcome. Exceptional performance, or exceptional stories, can still lead to an outlier multiple, but at the end of the day, the market cares more about the cash flow delivered than which company delivers it. Remember that an IPO is not necessarily an exit. In many cases, it is simply another type of funding event, so it only provides partial liquidity to founders, employees, and investors. Trading multiples are calculated on either LTM revenue or estimated ARR.

03 · The M&A multiple

These are derived from private market transactions.

They are often below and very rarely above the trading multiples, depending on how much leverage the buyer has in the deal, or if the target has special strategic value for the buyer. Deal structure can also impact this figure significantly. All-cash deals typically happen at lower multiples than all-stock deals. And for deals with an earn-out component, buyers should risk weight the figure conservatively. M&A multiples are typically based on ARR, but can also be based on LTM revenue.

Related reading: Improving your exit valuation and, from our Valuation Fundamentals series, How much is my company worth?

Frequently asked questions

What are the three types of valuation multiples?
The fundraising multiple, the trading multiple and the M&A multiple. Each has its place, but at different stages of the journey. They can be quite far apart, so mixing them up can cost you the deal or clog your cap table.
Are fundraising multiples higher than trading and M&A multiples?
Typically, yes. Fundraising multiples are typically well above trading and M&A multiples, which unsavvy investors can sometimes find hard to stomach. But the bet is that the exit will happen based on a revenue number so big it more than makes up for the ‘step down’ in multiple.
Are M&A multiples higher or lower than trading multiples?
They are often below and very rarely above the trading multiples, depending on how much leverage the buyer has in the deal, or if the target has special strategic value for the buyer.
Is an IPO an exit?
Not necessarily. In many cases, it is simply another type of funding event, so it only provides partial liquidity to founders, employees, and investors.

Sources

Originally published in Pre-Money, Issue 01 (Crispa, 2026), p. 3. Figures are as reported at the date given with each chart; medians describe a market, not any one company, and nothing here is advice on the price of yours.

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