By Aman Verjee General Partner, Practical Venture Capital March 21, 2022 Practical Summary: · Our PVC SaaS Index™ companies trades at 11x EV / LTM revenues, well within the historical range of 7–12x where SaaS has traded for most of the past 10 years · The median SaaS multiple has…

Practical Summary: Our PVC Index of SaaS companies now trades at over 11x EV / LTM revenues More recent IPOs (post 2016) are at 18x This group of 51 companies ($680B market cap) is growing at a median 34% yoy growth rate This may be the first time ever that…

Practical Summary: eCommerce has accelerated amid the COVID-19 pandemic Online sales (excluding restaurants / gas) will represent over 25% of total US retail sales in 2020 versus 16% in 2019 Some of the early winners were the established eCommerce brands, notably Amazon, Walmart, Target and eBay More recently, a next…

A Practical Summary The economic recovery unfolding in the US is neither U-shaped nor V-shaped … it’s best expressed as a “K-shaped recovery,” with two Americas diverging For wealthy Americans who are in the top income quartile, and who own significant financial assets, the recession is effectively over: incomes, employment…

A Practical Summary: Practical Venture Capital has developed a new proprietary index of publicly traded SaaS companies — the PVC SaaS Index™ — which tracks 103 US-listed companies with software-as-a-service (“SaaS”) business models These companies have generally traded at 5-8x enterprise value / trailing revenues (“EV / LTM”) since 2013…

Summary: Practical Venture Capital has developed a new proprietary index of publicly traded SaaS companies: the PVC SaaS Index™ This index tracks the EV / LTM multiple of a basket of 80 SaaS companies in five different verticals This multiple has generally been in a range of 5-8x since 2013…

Summary · The enterprise value of a SaaS company at IPO can be predicted almost entirely with just two metrics: 1) the annual recurring revenue in the most recent quarter, and 2) the yoy growth rate of that ARR from the year-ago period · The relationship between revenue growth and…

Since the public equity markets bottomed out around March 23, high-growth SaaS companies that IPO’ed in 2018 or 2019 have been among the strongest performers That group is now trading above where they were in February,when the broader markets peaked and started their freefall. “Work from home” stocks (like Zoom…

Summary: The S&P 500 has rallied 27% from the March 23 lows The fiscal and monetary stimulus has been much more rapid and significant than anything we’ve seen in prior recessions. This is a strong technical rally, and I wouldn’t fight the Fed. Bear market rallies … upticks during periods…