Not that much as long as Square has a decent, well subscribed IPO.

The market sets prices.  And they do go up and down.

If the last Square rounds were priced “too high” for a ’15 IPO  … and it looks like they may have been, with hindsight at least … then comparable late-stage valuations will fall.   Probably, in some cases, they already have.

It’s OK.

Multiples in particular, go up and down.  The market decides.

This isn’t going to cause a freezing of the capital markets.  But having a lot of IPOs price at less than the last round means implicitly, those deals were all overpriced by at least 50-100%.

So … revenue multiples paid in valuations will come down to adjust to that.

In SaaS, in many cases, they already have.  If valuations fall 1/3d, they fall a 1/3d.  It will be OK.  Companies will get funded.  They’ll just have to wait longer to achieve the same valuation, or sell more of the company.

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