Joachim Blazer


ReTest Must Invoice 83,333 Subscriptions Per Month for Its €3M Valuation

German startup ReTest just raised €600K from High-Tech Gründerfonds (HTGF).

ReTest sells subscriptions to its software testing tool to DevTesters and managers for €15 per subscription per month (€150 per year).


Assume that ReTest sold a 20% equity stake to HTGF.

Then ReTest is valued at €600K / 20% = €3M post-money.

How many subscriptions must ReTest invoice each month for its €3M valuation?


HTGF labels this investment as a seed round.

Assume that HTGF want to make 10x on its winners.

And that they need 2x to compensate for dilution.

Then HTGF wants to make 10 * 2 = 20x on its investment.

And ReTest needs a €3M * 20 = €60M exit value for its €3M valuation.


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

And that there is no cash and debt at exit.

Then ReTest needs an average of €60M / 4 / 12 = €1.3M in monthly revenue at exit for its €3M valuation.


ReTest charges DevTesters and managers €15 per subscription per month.

Then ReTest must invoice an average of €1.3M / €15 = 83,333 subscriptions per month at exit for its €3M valuation.


Different assumptions?

Make a copy of the spreadsheet used for this post (File > Make a Copy…), put in your assumptions and draw your own conclusions.

Originally published at on March 27, 2019.

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