Really enjoyed the analysis--and definitely praying for another ZIRP. Quick question--where was the growth endurance benchmarked from? Or was it just an estimate? Taking a quick look at a company like OneStream, it seems like they had a ~87% revenue endurance.
Got it, seems like your estimates would make sense back in 2021, wondering what this analysis would look like with the 100%+ growth endurance some analysts are predicting/subsiding cloud cost optimization headwinds per https://nextbigteng.substack.com/p/did-growth-endurance-endure ?
I would say probably not as bleak of a picture as it seems but probably somewhere more around normal level in terms of software IPOs. Wondering if you had any insight into how open these zombie unicorns are to taking down rounds, especially with a lot of them having a short runway in the near future.
That's a great post / love Janelle's writings. I think the re-acceleration is because growth collapsed so much & things are normalizing for some buyers. But mechanically it's impossible for ALL software companies to have 100%+ growth endurance because there's a physical limit to IT budgets.
If we had more companies of OneStream's caliber (~$500M ARR, growing 30%+ YoY, with strong growth endurance), then we'd see more IPOs. There's certainly an immense pressure on the VC side to see some liquidity.
Really enjoyed the analysis--and definitely praying for another ZIRP. Quick question--where was the growth endurance benchmarked from? Or was it just an estimate? Taking a quick look at a company like OneStream, it seems like they had a ~87% revenue endurance.
A good amount of info on the internet but BVP had a good article https://www.bvp.com/atlas/scaling-to-100-million#Growth-Endurance
Got it, seems like your estimates would make sense back in 2021, wondering what this analysis would look like with the 100%+ growth endurance some analysts are predicting/subsiding cloud cost optimization headwinds per https://nextbigteng.substack.com/p/did-growth-endurance-endure ?
I would say probably not as bleak of a picture as it seems but probably somewhere more around normal level in terms of software IPOs. Wondering if you had any insight into how open these zombie unicorns are to taking down rounds, especially with a lot of them having a short runway in the near future.
That's a great post / love Janelle's writings. I think the re-acceleration is because growth collapsed so much & things are normalizing for some buyers. But mechanically it's impossible for ALL software companies to have 100%+ growth endurance because there's a physical limit to IT budgets.
If we had more companies of OneStream's caliber (~$500M ARR, growing 30%+ YoY, with strong growth endurance), then we'd see more IPOs. There's certainly an immense pressure on the VC side to see some liquidity.