Due Diligence Tool
SaaS Risk Assessment
Investors deduct value for every risk they find. Take this 2-minute assessment to spot your "Red Flags" before they do.
Question 1 of 60% Complete
market Risk
How fast is your target market growing?
The "Discount Factor"
Most founders focus on increasing revenue (Output). Investors focus on reducing risk (Certainty).
A business with $1M ARR and High Risk might sell for 2x ($2M).
A business with $1M ARR and Low Risk might sell for 6x ($6M).
The 4 Horsemen of SaaS Risk
- Product Risk: Technical debt and IP ownership. Do you actually own what you are selling?
- Market Risk: Is your market growing or shrinking? Are you a small fish in a dying pond?
- Team Risk: "Key Person Risk". If the founder gets hit by a bus, does the business survive?
- Concentration Risk: If one customer leaves, do you lose >10% of your revenue?