Clouded Judgement provides a weekly, data-driven look at the intersection of private and public market for technology companies.
One interesting data point in the beginning of 2024 is the valuation of SaaS companies (in the US market). After a strong end to 2023, valuations (example used is enterprise value / next twelve months revenue) are pretty much back to normal.
It is clear that the public stock market loves high growth. Which indicates that for high growth companies (30%+ per year), the IPO window should be open in 2024.
At least the main problem isn’t valuations themselves, but a combination of late-stage startups not performing to the expectation of the stock market (in profitability and revenue growth) and the problem of the overhang of high private valuations from 2020 and 2021.
