Why Bootstrappers Can Price Differently
Without venture capital, buyers focus on cash conversion, owner workload, and durability. You can highlight traits VCs overlook:
- Real profitability: Consistent SDE margins above 20% are rare in VC-backed peers.
- Customer loyalty: Low churn and strong NPS indicate product-market fit without incentives.
- Efficient growth: CAC that repays in <9 months signals healthy economics.
Metrics to Lead With
- Gross margin over 70%.
- Net revenue retention above 95% for B2B.
- MRR growth that’s consistent, even if modest.
- Owner time commitment <20 hours/week.
Narrative Buyers Love
Explain how you scaled without dilution:
- Document bootstrapped milestones—first $1k MRR, first enterprise logo, first partner.
- Show how customer feedback shaped the roadmap.
- Highlight resilience through downturns or platform changes.
Valuation Ranges
Bootstrapped SaaS typically trades at:
- 3x–5x ARR when growth is steady and churn is low.
- 4x–6x SDE for lean teams with clean financials.
- 1.5x–2.5x ARR if growth is flat or customer concentration is high.
Proof Points That Replace VC Signals
Operational Strength
- Documented SOPs for onboarding, support, and releases.
- Reliable uptime history and monitoring.
- Clear product analytics to validate usage depth.
Financial Discipline
- Cash-flow positive months and a runway buffer.
- Clean accrual accounting with separated SaaS vs. services revenue.
- Evidence of reinvestment payoffs (e.g., feature launch → churn drop).
Next Steps for Bootstrapped Exits
Position your business like a productized asset, not a personal project.
- Map weekly founder tasks and delegate what a buyer can outsource.
- Create a 12-month roadmap with costs and expected ARR impact.
- Package testimonials and case studies to prove ROI.
- Offer transitional advisory hours to de-risk the handover.