Oaky’s €10M Valuation Requires Them to Contract 1.7M Hotel Rooms

Dutch startup Oaky sells upselling software to hotel operators for an average €1.50 per room per month.

Oaky just raised €2 million from angel investors.

Valuation

Assume, based on comparable deals, that Oaky sold a 20% equity stake in their company to the angel investors.

Price startup = price deal / equity stake sold.

Then Oaky is priced at €2 million / 20% = €10 million post-money.

Exit

Assume, based on comparable deals, that the angel investors want to have a shot at making 15x on their investment.

Exit value = price startup * money multiple.

Then Oaky’s €10 million price requires a €10 million * 15 = €150 million exit value.

Revenue

Assume, based on comparable European enterprise software companies, that Oaky trades at 5x revenue at exit.

Annual revenue at exit = exit value / revenue multiple at exit.

Then Oaky’s €150 million exit value requires €150 million / 5 = €30 million in annual revenue at exit.

Rooms

Oaky charges an average of €1.50 per room per month.

Rooms per month at exit = annual revenue at exit / 12 / price per room per month.

Then Oaky’s €30 million annual revenue at exit requires them to contract €30 million / 12 / 1.50 = 1.7 million rooms per month at exit.

For context: Amsterdam currently has 35.000 hotel rooms.

Originally published at venturevalue.com on February 6, 2019.

Oaky’s €10M Valuation Requires Them to Contract 1.7M Hotel Rooms was originally published in Hacker Noon on Medium, where people are continuing the conversation by highlighting and responding to this story.

Publication date: 
02/11/2019 - 23:07