Technical CEO’s have better multiples than Business CEO’s
Do SaaS CEO’s with a technical background (engineering or product) outperform those CEO’s with a business background? It’s a fun question to ask and Conor Begley at CreatorIQ did the analysis.? He looked at 167 companies and the data is below.?
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Revenue multiple and growth.? Interestingly, companies whose CEO has a technical background have a much stronger revenue multiple (5.80x on median) versus those with a business background (3.44x).? YOYG is also stronger at 14% on median for technical CEO’s versus 11% for business CEO’s.? Those are material differences.? ?
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Margins.? Business CEO’s outperform materially on EBITDA margin (4.7% on median for business CEO’s versus 2.7% for technical CEO’s).
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The data is interesting, and if you’d like the spreadsheet, I’d be happy to share.? Thank you Conor for doing the work.?
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?Thank you for your readership.? See more blogs and SaaS data at blossomstreetventures.com.? Email the author at [email protected].