Are Massive Valuations Back? Yes and No

Are Massive Valuations Back? Yes and No

Back in January, Yelp acquired Hatch for $300 million. One thing that jumped out was the pre-money valuation and purchase price. Given Hatch’s $25 million ARR, the purchase price reflected a 12x ARR multiple. This begged the question: Are Covid-era software multiples back? The answer is yes and no.