Hot in Enterprise IT/VC - What's 🔥 in Enterprise IT/VC #279
What's 🔥 in Enterprise IT/VC #279What goes up must come down - ❄️ back to earth, what it means for private cos + how a customer discovery email turned into a company
Let’s all support the people of 🇺🇦 - this is one of many ways to do so but one to which I’ve contributed. Flexport is organizing an airlift of humanitarian relief supplies to refugee centers in Eastern Europe. You can help by donating to pay for more flights at flexport.org/donate. 🧵👇 Switching gears, the last of the high growth public cloud companies is coming back to 🌎 multiple wise. Snowflake beat its quarter, as usual, but guided to less growth in the future and here’s what happened. Snowflake's Revenue Growth over the last 8-Quarters:
• 149%
• 121%
• 119%
• 117%
• 110%
• 105%
• 110%
• 101%
What went wrong?
+ Biggest deceleration YoY
+ 15% QoQ was the weakest in a long-time
+ Guide was weak, Q1 implies 90% YoY &
+ FY Guide inline w/ consensus. Jamin Ball sums up the cloud multiples best here… Look at the Top 5 multiples - down from 80x NTM to 30.9X - 😲. Yes, folks, this multiple compression has been sustained and does have an impact on later stage companies raising growth rounds. Snowflake was always at 40x and higher and gravity is a powerful force which finally took hold. If you are thinking of getting that 100x NTM multiple for your company, then think again. It’s not coming back…it will get better as the world normalizes in 12 months but the 100x days are over. While growth investors have adjusted their 🤔, it’s time for founders to do the same and go back to picking the right partner and right amount of capital for your business. Overcapitalizing your business at too high a price can eventually cause massive ripple effects for your business if you “miss” a quarter. Here’s one of many examples we will probably read about in the near future. Tiger, Bessemer-backed Automation startup @HyperscienceAI laid off 100 workers last week after it failed to meet revenue targets. This morning, its co-founder and CEO—who decided two weeks ago to make deep cuts—resigned. Scoop: As for Series As and Bs, this multiple compression has not filtered down yet and the best companies are still raising large sums of 💰 at super high valuations. However, eventually even these companies will have to perform in order to raise their next round. If you have 💰, remember cash is king and spend it wisely. Top of mind for me this week was also the launch of CommonPaper which we funded over a year ago, backing Jake Stein (for a 3rd time) and Ben Garvey. I remember first talking to Jake about his idea and thinking to myself, I can’t wait to back Jake but whoa, how does one create a scalable way to solve the problem of standardizing sales contracts to close deals faster (see our Why We Invested post). So how did this customer discovery email turn into a company?
GM - want to close cloud software deals faster + turn contracts into APIs? Try the #OSS standard agreements + structured contract platform from @UseCommonPaper
🔥 up for @Boldstartvc to partner with @jakestein @bengarvey for 3rd time along with friends @uncorkcap CommonPaper @UseCommonPaper Big day! The Common Paper platform is now publicly available, we published an open-source standard agreement for selling cloud software AND announced our $4.5M seed round co-led by @Boldstartvc + @uncorkcap. Check it out: https://t.co/F6qKAmlKRUIt’s called founder magic 🪄 is when you take a pain, a ❓, + a discovery email and turn it into contracts as APIs with a structured contract platform and open source standards (CommonPaper blog post here). As always, 🙏🏼 for reading and please subscribe if you have not done so. Scaling Startups
Enterprise Tech
Markets
If you liked this post from What's Hot in Enterprise IT/VC, why not share it? |
Older messages
What's 🔥 in Enterprise IT/VC #278
Saturday, February 26, 2022
🙏🏼 🇺🇦...🤔 on your first sales hire...continued
What's 🔥 in Enterprise IT/VC #277
Saturday, February 19, 2022
➕/➖ of backing founders creating new categories 📈 vs. those who reimagine existing markets, it's not the TAM you start with but the TAM you exit with
What's 🔥 in Enterprise IT/VC #276
Saturday, February 12, 2022
Startups like a fine 🍷, the longer arc of success 💪🏼 for some founders
What's 🔥 in Enterprise IT/VC #275
Saturday, February 5, 2022
☁️ is still on 🔥 + what to look for in journey from OSS project to company
What's 🔥 in Enterprise IT/VC #274
Saturday, January 29, 2022
25 Years in NYC Enterprise Tech and why I moved to Miami 🌴 - 🔥 up to build 🏗️
You Might Also Like
What’s 🔥 in Enterprise IT/VC #390
Saturday, April 27, 2024
ServiceNow, Microsoft...closing sales in the enterprise - demonstrable ROI + AI Pixie dust ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
Try our premium newsletter for just $19/month
Saturday, April 27, 2024
This weekend only, early-bird pricing is back. Learn from exceptional founders and investors for just $19/month or $200/year. New series are being published now. ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
🤖 $34K MRR - Simple chatbot builder tool
Saturday, April 27, 2024
+ why I'm a mediocre entrepreneur
🗞 What's New: Lower your website's bounce rate
Saturday, April 27, 2024
Also: Hiring the right person!
10words: Top picks from this week
Saturday, April 27, 2024
Today's projects: Spreadsheet Secrets • Basedash • Pinghome • Schedule AI • Mailbites • Mchezo • Writekit • Build Chatbot • Youform • CV Maker AI • Onlinesafari.TV • dietdebug.com 10words Discover
Where is the money coming from?
Saturday, April 27, 2024
The truth is... The problem with marketing metrics is that most of them are meaningless: How much traffic did we get last month? How many TikTok views? How many clicks did we get from our FB ads? How
TikTok creators, strap in...
Saturday, April 27, 2024
Plus tips, news & Buffer updates for your social media journey Image Hey folks 👋🏾 It happened — Bytedance will be forced to sell TikTok in the US or risk being banned entirely. This isn't
🚀 Q1 2024 Space Earnings
Friday, April 26, 2024
Plus Seraphim Space's second investment fund, $MNTS listing deficiency warning, $RDW's new MoU, and more! The latest space investing news and updates. View this email in your browser The Space
When 1% Market Share Shifts Represent $5b of Market Cap
Friday, April 26, 2024
Tomasz Tunguz Venture Capitalist If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. When 1% Market Share Shifts Represent $5b of Market Cap If it
Emble, Inbox Airlock, and Hireforce
Friday, April 26, 2024
User testing, but easy and fast BetaList BetaList Daily Emble User testing, but easy and fast Inbox Airlock Keep your Gmail inbox clear from unwanted email Hireforce Simple & effective recruitment