25% of The Cloud 100 Is Growing 100%+ at $100m ARR. Whoa.

Byron Deeter, general partner at Bessemer Venture Partners and I caught up on SaaS and Cloud in general and the upcoming Cloud100 awards and learnings.  The full session is below and sign up for the Cloud 100 for FREE here.

A few of the takeaways:

#1. About 25% of the Cloud 100 top private SaaS companies are growing / grew 100% or more at $100m ARR (!).  I knew it was a significant number of private SaaS companies growing this quickly, but I didn’t know it was that many.  A full quarter of the top 100 private Cloud companies were doubling or more at $100m ARR.  Incredible.

#2. Late-stage investing sees $100B+ outcomes (i.e., market cap after IPO) as the goal.  How? Canva can be as big as Adobe.  Toast is growing faster than almost any other software company.  So even an investment at $5B can lead to a 10x outcome, or more.

#3. The majority of SaaS companies that hit $20m ARR get a decent M&A offer from Private Equity.  The multiples often aren’t huge, but still decent. These can be good outcomes — if you’ve been capital-efficient, and are OK with the potential cost savings that may happen after the deal.  But these offers become almost routine as you hit scale, even if growth is middling.  A bit more on getting acquired by Private Equity here.

Much more in our deep dive here:

 

Published on July 28, 2021

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