(this post is a feed post from my comments on reddit)
r/Entrepreneur
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$500MRR is too low. retention of 10% = 90% of ppl leave within 6mths.
look at customer LTV.
better not fundraise right now. if you need to raise 500k… what % of equity would be give? since that dictates valuation.
so lets say you give 20% (which is a f\*ck of a lot) – you’d be suggesting your business is valued at $2.5mil
given $500 MRR = $6000ARR
so thats a multiple of 416x
just for context, a typical multiple for a margin business is closer to 5x, startups can go to around 20x
have you considered part time or agency devs to keep that cost down?
Is it worth it to raise money right now?
byu/LavonnaTeti inEntrepreneur