So Coate a leading multi-stage VC firm put up a ton of great data in its East West conference. A few that I thought we were super helpful for SaaS folks:
“At the 8th annual East Meets West (EMW) conference, we gathered technology leaders from around the world for three days of thought-provoking conversations and connection building.
We kicked off the event with our annual “Coatue View on the State of the Markets” to provide an outlook on the macroeconomic landscape that helps guide our view on both the public and private markets. Despite ever-present uncertainty and change, our analysis suggests that public markets remain resilient and that AI continues to present a new vector of opportunity.”
#1. There Are So Many Unicorns, We Have a 25 Year IPO Backlog
Now of course in theory, IPOs could dramatically exceed their historical pace. But assuming that doesn’t happen — and it’s been a very dry 2.5 years for IPOs — it would take 25 years to get through all the unicorns we already have.
#2. AI Deals Are Only 3% of VC Deals But Consuming 15% of Total VC Capital
They’re also raising at 5x the valuation for non-AI deals.
#3. Will Private Equity (“PE”) Exits Bridge The Gap?
Private Equity does have record amounts to invest.
#4. SaaS and Software Multiples Are at Near All-Time Lows — Because Growth Has Slowed
We already know this, but why? Coate believes it’s simple. Growth has slowed to the teens for public SaaS companies.
And growth has slowed all across Coate’s private portfolio as well, not just public companies:
#5. Software Growth Will Bounce Back, With AI As the Accelerant
Coate believes software growth will rebound, it’s just the next wave after semiconductors and infrastructure. Software growth is the next big phase from AI investment. Fingers crossed!!
Catch the full talk here.
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via https://www.aiupnow.com
Jason Lemkin, Khareem Sudlow
