Micro SaaS Valuation: Guide for Small SaaS Businesses

Micro SaaS businesses are smaller SaaS operations, typically with monthly revenue between $1,000 and $50,000, operated by small teams or solopreneurs. Micro SaaS valuation follows similar principles to larger SaaS, but with some particularities. Multiples tend to be lower (2x to 5x MRR) due to smaller scale, higher risk, and lower liquidity. Factors that increase value include: consistent growth, low churn, high margin, automated operations, mature product, and scalability potential. Micro SaaS with less than $5K MRR are harder to sell and have lower multiples. This guide details specific valuation methods for micro SaaS, risk analysis, growth potential, technology evaluation, market analysis, and how to structure a sale. We include real transaction case studies and financial analysis templates.