Dear SaaStr: At the Start of 2024, Are VCs More Optimistic about M&A and IPOs?
I think it’s pretty neutral / not much change from 2023. So far.
IPOs: VCs are predicting more IPOs in 2024 than 2023, for sure. 2023 was the lowest number of SaaS and tech IPOs on recent record. But … multiples are still at multi-year lows. So the prices won’t be great, and while some will just say “it’s time to IPO already”, there may not be a big rush. And it may be tough for all best the best to IPO.
M&A: VCs are worried about anti-trust and the Figma/Adobe deal being blocked in the U.K. especially. But, the bigger issue again is multiples. There is plenty of appetite for M&A today. The issue is prices in general remain low as public multiples remain stuck at 6x ARR average.
Much more here:
And a deep dive on how 2024 may be for IPOs here:
