University of Twente Student Theses
A valuation blueprint for Software-as-a-Service startups
Mulder, R.L.M. (2025) A valuation blueprint for Software-as-a-Service startups.
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| Abstract: | Akela Hub is a Dutch Software-as-a-Service (SaaS) startup that spun out from the Unknown Group in early 2024. Operating with a SaaS revenue business model, Akela Hub faces a common challenge among early-stage startups: determining the value of the startup. Traditional valuation methods, such as Discounted Cash Flow (DCF) or market comparables, often fall short for startups like Akela Hub due to their limited financial history, intangible asset structure, and high growth uncertainty. This resulted in the following research question: How can a valuation blueprint for Akela Hub be developed and applied to address the limitations of traditional valuation methods and support strategic decision-making for exit strategies? To address this, we developed a lifecycle-based SaaS valuation blueprint through a combination of literature research, expert validation, and regression analyses. The blueprint utilises Annual Recurring Revenue (ARR) as a proxy to categorise startup stages and offers tailored metrics and valuation methods for each stage. Additionally, two Multiple Linear Regression (MLR) models, using exit data from acquisitions and Initial Public Offerings (IPO), further revealed valuation insights. For example, acquisitions in North America tend to yield a valuation approximately 21% higher than in Europe, and the valuation of an IPO exit increases over time due to company maturity, even when funding is held constant. Applying the blueprint to Akela Hub, the company was classified in the seed stage. As a result, the VC method was used to estimate the valuation under different growth scenarios, resulting in a current valuation range of €2,900,000 to €20,100,000. Although this is a broad range, it reflects the expected uncertainty of early-stage forecasting. |
| Item Type: | Essay (Bachelor) |
| Faculty: | BMS: Behavioural, Management and Social Sciences |
| Programme: | Industrial Engineering and Management BSc (56994) |
| Link to this item: | https://purl.utwente.nl/essays/106590 |
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