Revenue Multiple
Definition
A revenue multiple values a company as a multiple of its revenue or ARR, the dominant valuation shorthand for growth-stage software.
How it comes up in fundraising
In 2026, US B2B software Series A rounds price at roughly 15x to 30x current ARR, with growth rate and retention setting the position in the band.
Frequently asked questions
What drives a higher revenue multiple?
Growth rate above all, then net revenue retention, gross margin, market heat, and competition for the deal.
Do multiples apply to pre-revenue startups?
No; pre-revenue pricing runs on stage norms and comparables instead.
Round Funded resources
Cite this term
Round Funded. "Revenue Multiple." Startup Fundraising Glossary.
Stable URL, it will not change: https://www.roundfunded.com/en/glossary/revenue-multiple
Related terms
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