Dutch sells upselling software to hotel operators for an average per room per month. startup Oaky €1.50 Oaky just raised from angel investors. €2 million Valuation Assume, based on comparable deals, that Oaky sold a 20% equity stake in their company to the angel investors. Price startup = price deal / equity stake sold. Then Oaky is priced at €2 million / 20% = €10 million post-money. Exit Assume, based on comparable deals, that the angel investors want to have a shot at making 15x on their investment. Exit value = price startup * money multiple. Then Oaky’s €10 million price requires a €10 million * 15 = €150 million exit value. Revenue Assume, based on comparable European enterprise software companies, that Oaky trades at 5x revenue at exit. Annual revenue at exit = exit value / revenue multiple at exit. Then Oaky’s €150 million exit value requires €150 million / 5 = €30 million in annual revenue at exit. Rooms Oaky charges an average of €1.50 per room per month. Rooms per month at exit = annual revenue at exit / 12 / price per room per month. Then Oaky’s €30 million annual revenue at exit requires them to €30 million / 12 / 1.50 = 1.7 million rooms per month at exit. contract For context: Amsterdam currently has hotel rooms. 35.000 Originally published at venturevalue.com on February 6, 2019.
