AI Public & Private Premia for AI Companies
Tomasz TunguzVenture Capitalist If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. AI Public & Private Premia for AI Companies
We’ve been tracking the performance of publicly traded AI companies since the beginning of the year. Publicly traded companies with AI products or strategies trade at about twice the forward multiple of non-AI peers.1 Within the private markets, the same is true within the Series A. GenAI startup companies raise at about 1.5-2x the post-money valuations of all software companies.2 These businesses represent about 30% of Series As in 2024. The rationale behind these higher prices rest in the idea that AI companies have signficant future growth & likely faster growth than their non-AI peers both public & private. Most of the time, the private tends to lead the public market with trends & valuations. Not this time. The markets are moving in parallel. This is likely because the major AI publics like NVIDIA & Microsoft have spurred the market forward first. Should the multiples remain roughly the same in both arenas this means that there is no kink in the valuation curve between public & private markets. During the last decade, the private markets often applied higher multiples to privates than the publics & this has created an overhang - a need for private companies to grow into their valuations as they approach IPO. 1 Forward multiple is the enterprise value divided by the forward revenue estimate. 2 Pitchbook Series A data as of publication date. |
Older messages
The PostModern Data Stack
Monday, August 12, 2024
Tomasz Tunguz Venture Capitalist If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. The PostModern Data Stack If the Modern Data Stack is dead,
Snowflake's 4 Areas of Investment in AI
Friday, August 9, 2024
Tomasz Tunguz Venture Capitalist If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. Snowflake's 4 Areas of Investment in AI In a recent Office
The 3 Attributes of an Attractive Market for AI
Monday, August 5, 2024
Tomasz Tunguz Venture Capitalist If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. The 3 Attributes of an Attractive Market for AI Call it
Rewriting the RFP for AI
Monday, July 29, 2024
Tomasz Tunguz Venture Capitalist If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. Rewriting the RFP for AI My first job as a teenager was a
The Battle for AI Gravity
Thursday, July 25, 2024
Tomasz Tunguz Venture Capitalist If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. The Battle for AI Gravity During the era of big data, data
You Might Also Like
Fidloop, AnimeGlobe, and Property Vue
Monday, September 16, 2024
Helping renovation contractors manage their projects & clients BetaList BetaList Daily Win a $100 Amazon gift card? Fill out this one-question survey about domain names. Marc Property Vue Helping
emerging energy trends
Monday, September 16, 2024
dive into the trends our experts are tracking into 2025 and beyond Hi there, Want to learn about the latest energy trends our expert is tracking into 2025 and beyond? Then this webinar is for you. CB
2024 Theory Ventures Go-to-Market Survey: Optimism Rises Amid Changing Market Dynamics
Monday, September 16, 2024
Tomasz Tunguz Venture Capitalist If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. 2024 Theory Ventures Go-to-Market Survey: Optimism Rises Amid
😓 Tired of Empty Promises?
Monday, September 16, 2024
+ (only) 3 guarantees I make
🦄 Job offboarding, improved
Monday, September 16, 2024
When guides offboarded employees through post-employment life.
12 Silicon Valley Startups Raised $466.9M - Week of September 9, 2024
Monday, September 16, 2024
Launch of 🍓 Unicorn Founders' Average Age is 35 💰 Tech for America Recap 🇺🇸 What Kind of Founders I Want to Invest In? 💪 SB-1047 for AI ️👮 ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
⏰ Only 1 Week Left!
Monday, September 16, 2024
Ready to build the life you dream of? Hey Friend , The countdown is on—just 1 week to go until the Start Your Ecommerce Business Summit kicks off! If you're ready to take control of your future,
Atomico's overhaul
Monday, September 16, 2024
Plus: The Paris-based startups to watch; latest deals View in browser Groupe ADP logo Good morning there, Last Monday, Atomico announced a fresh $1.24bn raised across two new funds; over 50% more than
✉️ How to Write Emails That Actually Convert
Sunday, September 15, 2024
Let's face it: most cold emails end up in the trash. But a well-crafted one could have a major impact on your startup and help you get new customers. This Week at YC September 15th, 2024 ✨ The
#197 | The next industrial revolution, Matching AI budgets with hype, & more
Sunday, September 15, 2024
Sept 15th | The latest from Insight, BBG, Flare, F-Prime, USV, and others ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏