So SaaS is back. Prime SaaS shares are on hearth the previous few months, and the SaaS downturn in B2B2B seems to be behind us.
And as inventory costs rip larger, progress VC floods again in. It’s pure.
However how aggressive will late stage traders be?
- In AI, it’s insane. As is progress, in some circumstances. The 300x ARR spherical is right here. It’s 2021 however over again, and completely different 😉
- However in SaaS general, the expansion playbook hasn’t completely labored out on the final 4 SaaS IPOs. All of that are epic firms with epic metrics.
Some tough metrics for the final 4 SaaS IPOs — which once more are epic ones:
These are tough metrics. I didn’t embrace antidilution protections to maintain it easy. What it does illustrate is that the final spherical traders within the final 4 IPOs mainly made — nothing at IPO. Not less than at IPO.
Now Rubrik has simply ripped since IPO, and Klaviyo has ripped since a post-IPO dip. However general, the expansion investments weren’t large wins.
Does this actually matter? 2021 costs had been definitely inflated in lots of circumstances from valuations right this moment. However I do suppose it can result in extra conservatism for now a minimum of on late-stage progress rounds in SaaS. Not less than in some circumstances. Databrick’s Sequence J at $62 Billion valuation could appear an exception. However even there, it’s “solely” at 20x ARR with about the very best metrics you might think about:
Databricks price $62B, seems like rather a lot however:
– Crossing $3B ARR
– Rising 60% (!) and >accelerating<
– 80% Gross Margins
– 500 $1m+ clients20x ARR doesn’t appear >that< excessive pic.twitter.com/5qW7jeReQc
— Jason ✨👾SaaStr 2025 is Could 13-15✨ Lemkin (@jasonlk) December 17, 2024
Everybody has to become profitable in enterprise for issues to essentially work. Not on each deal. However general.
A associated submit right here:
