The latest group of SaaS and B2B IPOs — Twilio, MuleSoft, Okta, Yext, Coupa, etc. etc. — are anything but a bubble.

Most are at $150m+ in ARR growing 50–70% or more year over year, with relatively modest losses, and net negative churn.

See, e.g., Mulesoft:

These are serious businesses, almost all of which should, eventually, scale to $1b+ in ARR and beyond.

Are the multiples too high? Hopefully not. But even if they are overvalued by 20–50%, it doesn’t matter. They’ll grow into their valuations. That’s not a bubble. It’s just a variance in revenue multiples within historical bounds.

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