This Week in Startups SaaS multiple compression, downturn outlook & advice for new VCs with Jason Lemkin of SaaStr | E1461
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May 16, 2022 
Join Jason Lemkin, founder of SaaStr and a SaaS investment expert, as he shares invaluable insights on surviving and thriving in a downturn. He offers essential advice for new VCs, focusing on how to assess quality revenue and avoid common pitfalls. The conversation dives into the future of SaaS investments and the importance of playing offense, even in tough times. Jason also touches on the dynamics of valuations and the significance of profitability, shedding light on opportunities and challenges in the evolving SaaS landscape.
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SaaS Multiples
- SaaS multiples climbed significantly, reaching 100X ARR in some cases.
- Jason Lemkin, while not fully understanding these multiples, didn't consider it a bubble, especially for high-growth companies.
SalesLoft Acquisition
- Jason Lemkin's fifth investment, SalesLoft, was acquired for over $2 billion in cash.
- Despite this, the syndicate didn't want to sell, illustrating the market sentiment at the time.
SaaS Multiple Volatility
- SaaS multiples can fluctuate drastically in short periods, similar to price changes of a jalapeno.
- Jason Lemkin questions whether these fluctuations are fundamentally driven.