Every week I’ll provide updates on the latest trends in cloud software companies. Follow along to stay up to date! What It Takes For A Premium Multiple Private companies often *think* they’ll exit at a >10x revenue multiple because “that’s where Snowflake is trading and we’re also a data infra business.” Or they’re a security company and “that’s where Crowdstrike and Zscaler trade.” It’s never that simple, so I wanted to lay out what it really takes to receive a premium multiple in the public markets. This is obviously based on markets today, which can fluctuate.
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Clouded Judgement 6.21.24 - What it Takes to…
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Every week I’ll provide updates on the latest trends in cloud software companies. Follow along to stay up to date! What It Takes For A Premium Multiple Private companies often *think* they’ll exit at a >10x revenue multiple because “that’s where Snowflake is trading and we’re also a data infra business.” Or they’re a security company and “that’s where Crowdstrike and Zscaler trade.” It’s never that simple, so I wanted to lay out what it really takes to receive a premium multiple in the public markets. This is obviously based on markets today, which can fluctuate.