Does anyone have an idea of what a revenue multiple for a tech startup with a transactional business model would be?
I know it would be highly variable, but any resources, thoughts or known multiples would be useful. Thanks!
Venture Capital Business Model
What do you mean by "revenue multiple"?
If you're thinking about estimating the fair market value of the startup based on its gross revenue (a.k.a. total sales + capital gains), then you're going wrong. The company's value will be determined by many things, of which revenue is less important -- earnings (a.k.a profit), unique technology advantages, and strategic fit with the buyer are more important.
Take a look at the following link if you want a superquick primer on valuation based on earnings or see Wikipedia's longer article on it.
I think most web business can be valuated or actually sold for 2x - 3x annual revenue as long as there is room for growth, and positive growth (business is not sinking).