Short one today. Altimeter put out a chart on SaaS company valuation that has been widely circulated:
The implication is public SaaS multiples are back to the average of the past decade. Only thing is the past decade was a decade of low / no inflation and low rates. Perhaps there’s a new paradigm this decade, or perhaps more of the same.
In similar vein, private tech company valuations should theoretically mirror their public peers. While the public market flogging of tech stocks started in November / December, private market companies have been slow to mark down as expected. Yesterday was one of the first major public markdowns:
Instacart Inc. said it has cut its valuation by about 38% to $24 billion, illustrating the difficulties of competing in the delivery market.
The San Francisco company said the valuation reflects the market turbulence affecting public and private technology companies. Instacart, which sends shoppers to pick and deliver groceries from supermarkets, was last valued at $39 billion about a year ago.
WSJ
The direction of future money flows in technology is to be determined, but one thing is clear is that it has been a one way street before this correction.