Honeybook, a startup, which recently priced at the end of 2021 at $ 2.4 billion, told Techcrunch that he achieved $ 140 million annual repetitive revenues (ARR).
This makes HoneyBook one of the few startups about the valuations of Peak-VC to report their funds after cooling the market.
Many startups that raised in 2021 and since then have not been raised under pressure to generate the revenues needed to verify their previously inflated valuations, and many of them may not survive much longer.
But Honeybook is doing so well, he sees no reason to maintain the secret of income indicators.
Honeybook offers business management software for independent entrepreneurs based on services equivalent to photographers, events planners and interior designers. The last increase was the E series worth $ 250 million from Tiger Global Management about three and a half years ago.
Given that the Honeybook is still valued at $ 2.4 billion, the latest number of ARR means a multiple valuation of about 17 times ARR.
Although there are no hard and quick rules for valuing private firms, investors say that software firms to the era before AA are generally valued not much than in comparison with the public market. The Meritech Saas index shows that firms growing in 25% or more per yr They are now valued at the median 13 -their ARR.
So what can justify a barely higher than average multiple for HoneyBook? One word: AI. This week, the company introduced a recent AI functionality, which helps users determine on the valuation of services and higher service of their clients.
The company claims that it is unique to assist entrepreneurs make business decisions with AI, because it has data on how similar owners of small businesses value their services and develop customer lists.
AI HoneyBook is embedded in the current offer, which incorporates CRM, supports invoices and payments and gives qualifying users access to funds for business development.
Jeff Crowe, a senior managing partner in Norwest and investor HoneyBook, believes that the company may burden its activities with AI.
“Solopreneur, like photographers, do not have time or experienced business” to strategically think about the best way to develop their business, said Crowe.
We hope that the recent functionality will help current HoneyBook users in the development of their very own firms, as a result of which the startup will earn more cash on a larger number of transactions it processes.