Subscription App Valuations
How to evaluate mobile apps that monetize with subscriptions
I pulled together some data on big consumer apps that focus on mobile and make money through subscriptions. These are some of the top players in the space, and I think their numbers give a useful view into how to evaluate businesses like this.
It’s worth saying that all of these companies are making over $100M a year, so they’re definitely on the higher end. Smaller companies tend to get lower valuation multiples, both when they raise money and when they get acquired.
2024 Consumer App Metrics with Valuation Multiples
All of the companies below are mobile first and monetizes with subscription. Data on some of them is readily available as they are publicly traded and disclose detailed financial information and metrics, for others data from different sources related to their fundraising anouncements and other sources. Overall there are 7 companies in this list: Duolingo, Life360, Bumble, Flo, Headspace, Calm, Strava.
* Annualized based on Q3 2024 revenue of $192.6M
** Annualized based on Q4 2024 revenue of $261.6M
The median EV/Revenue multiple is around 5x, while the average is closer to 8x, pulled up by outliers like Duolingo. This gives a good sense of how top companies in the mobile subscription space are being valued. The best performers—those with strong brand, growth, and retention—can command much higher multiples, while most others sit in the 3–6x range.
Investors in Subscription Apps:
Summary Table of Investors
And here’s a condensed list of VCs and key investors in these companies. Because maybe… just maybe… you were looking for the list of investors who invest in mobile apps?
Duolingo: Union Square Ventures, NEA, Kleiner Perkins, CapitalG, General Atlantic, Drive Capital
Life360: Bessemer Venture Partners, DCM Ventures, Fontinalis Partners, Allianz X, Bryant Stibel
Bumble: Blackstone, Accel, Greycroft, Bain Capital Ventures
Flo: VNV Global, Mangrove Capital Partners, General Atlantic, Target Global, EQT Ventures
Headspace: The Chernin Group, Spectrum Equity, Advance Venture Partners, Blisce/, Insight Partners
Calm: Insight Partners, Lightspeed Venture Partners, TPG Growth, Goldman Sachs, Marc Benioff
Strava: Sequoia Capital, Madrone Capital Partners, TCV, Sigma Partners, Dragoneer Investment Group
Note that two investors had invested in two companies from the list:
General Atlantic: Appears in Duolingo and Flo, two companies with different focuses (language learning and women’s health) but similar subscription-driven, mobile-first models. This suggests General Atlantic targets high-growth consumer apps with scalable monetization.
Insight Partners: Invested in Headspace and Calm, direct competitors in the meditation and mental health market. This overlap indicates a strategic play in the booming wellness sector, possibly diversifying bets across leading players.