So the markets are nonetheless down and multiples are nonetheless low, however progress charges in SaaS and Cloud are slowly creeping again. AI has pushed various speedy unicorns, and at SaaStr Europa 2023, Iconiq Development famous that whereas they did 0 model new progress investments in 2022, they’d already completed 5 within the first half of 2023.
So unicorns stay uncommon however we could have bounced off the lows. For those who can increase at a excessive valuation at present although … do you have to?
Let’s simplify. For those who by some means are capable of increase at $1B, then your traders can be in search of not less than a 3x return, i.e. that you simply’ll be value not less than $3B post-IPO. Actually extra attributable to dilution, so in all probability not less than $3.5 Billion. However let’s simplify.
Check out the valuations on this chart:
To exit at $3B+ post-IPO or acquisition, meaning it’s important to do higher, and get larger, than:
– PagerDuty
– SproutSocial
– RingCentral
– Amplitude
– JFrog
It may be completed. The perfect in SaaS and Cloud are nonetheless rising at epic charges. However concentrate on what occurs whenever you increase at valuations > $100m, if you happen to’re fortunate sufficient to have the ability to. You actually need to construct one thing epic at present to justify it.
