Zenloop Must Invoice 11,000 NPS App Subscriptions per Month For Its €26M Valuation

In its Startup plan, German startup zenloop sells NPS app subscriptions to startups for €299 per month.

They just raised €5.3M ($6M) from Nauta Capital and others.

Valuation

Assume that zenloop sold a 20% equity stake to the investors.

Then zenloop is valued at €5.3M / 20% = €26M post-money.

Exit

Assume that this was a Series A.

And that the investors want to make 5x on their investment.

And that there will be 1 follow-up round of 20%.

Then zenloop must have a €26M * (5 / (1–20%)) = €165M exit value for its €26M valuation.

Revenue

Assume that zenloop trades at 4x trailing 12 months revenue at exit.

And that there will be no cash and debt.

Then zenloop must have an average €165M / 4 / 12 = €3.4M in monthly revenue for its €26M valuation.

Subscriptions

Zenloop charges startups €299 per subscription per month.

Then zenloop must invoice €3.4M / €299 = 11,000 subscriptions per month for its €26M valuation.

For context: Germany had 357,000 small companies in 2018.

Originally published at venturevalue.com on March 1, 2019.