valuation

If you feel cloud and software stocks should not trade for less than their historical average, then you have cause to cheer. But is that a valid perspective?

Why software valuations could drop more if things don’t change soon

Each company is unique and faces diverse circumstances during a downturn. The best advice for handling the downturn should be based on the length of your runway and the efficiency…

How startups should handle the downturn

The key difference between 2022 and previous downturns is that this contraction was anticipated for a long time, whereas the previous downturns were far more sudden.

8 factors to consider when fundraising during a downturn

Embedded finance — where financial services companies and others bring in different kinds of fintech technology by way of APIs to enhance their own offerings with more data and functionality…

Bud raises $80M more to expand its AI-based open banking platform, used to power lending tools and more

This is the most critical impact of downturns: Venture capital funds will have a more challenging time raising money to invest, which translates into less capital being available to founders.

What connects the stock market contraction to startup valuations?

The IPO window has all but closed for technology companies in the wake of a massive downturn in the market, but an opening still remains for some, in the form…

Data intelligence startup Near, with 1.6B anonymized user IDs, lists on Nasdaq via SPAC at a $1B market cap; raises $100M

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Only 1 in 6 unicorns are true IPO candidates today

How did we wind up with so many unicorns and so few IPO-ready private technology companies with IPO-scale valuations?

9:00 am PDT • May 17, 2022
Only 1 in 6 unicorns are true IPO candidates today

Gusto, an HR technology unicorn worth nearly $10 billion, has raised an extension to its 2021-era Series E funding round. That funding event included $175 million in primary capital, a…

Gusto raises an extension round, following Faire as unicorns react to a changing market

Hello friends and welcome to Daily Crunch, bringing you the most important startup, tech and venture capital news in a single package.

Daily Crunch: Terraform Labs CEO goes public with strategy to re-peg sliding UST stablecoin

“What is your valuation?” As an angel investor, this is one of my first questions when talking to founders for a potential investment. And often, I hear numbers that are…

Finding your startup’s valuation: 5 factors to consider

As the public cloud market pulls back, VCs and founders alike must prioritize recurring revenue over sky high valuations that are often as mythical as the unicorns they’re named after.

The age of the centaur: $100M ARR is the new cloud valuation milestone

There’s one metric that companies must get right in order to demonstrate their potential for growth and attract investors: their LTV/CAC ratio.

A founder’s guide to calculating CAC and LTV the right way

By now you may be tired of stories detailing the bad news in the market. Too bad! More are coming. Let’s talk specifically about the bad news for SaaS.

The SaaS sell-off is steepening

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Hey look, another downturn

Paper unicorns are going to fold this year if their financial origami doesn’t yield something truly surprising.

8:25 am PDT • May 9, 2022
Hey look, another downturn

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As interest rates rise, startups and VCs are playing a new game

It’s a mess out there for startups that have only known summer. Winter is not coming; it’s here.

6:00 am PDT • May 7, 2022
As interest rates rise, startups and VCs are playing a new game

The market for startup investment has changed. From the hottest year in startup VC history to a period of pessimism, how did we get here? This digest of TechCrunch coverage…

Need advice on navigating a tough startup market? Start here

Did UiPath’s valuation get hit by the same shrink ray affecting other software companies, or are other factors at work?

TechCrunch+ roundup: Creating financial models, UiPath’s plummet, pitch deck pro tips

We speak with about 200 private companies every quarter, and the vast majority of our conversations over the last three months have revolved around one question: What am I worth…

What am I worth now?

For common shareholders (employees, advisers and previous investors), a cram-down round is a big middle finger, as it comes with reverse split.

Cram downs are a character test for VCs and founders

New data provides more evidence that what Instacart went through earlier this year could prove to be more harbinger of what’s to come than a one-off datapoint.

Yep, startup prices are falling
Startups

Is Stripe cheap at $95 billion?

6:44 am PDT • April 12, 2022

Did Stripe raise at a price that it cannot defend, as many other startups and unicorns did last year?

Is Stripe cheap at $95 billion?

Although there was still ample capital in the market and deal-making appeared strong at the start of this year, we’re seeing stress cracks appear across the startup sector. What gives?

Fast’s demise will teach us just how fragile newly built unicorns really are

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Raising the right amount of capital after a correction

If you are just getting started — or even still just dreaming about your own startup — is a downturn like this even a good time to start a company? We believe it is an excellent time.

8:31 am PDT • April 4, 2022
Raising the right amount of capital after a correction

Hello friends and welcome to Daily Crunch, bringing you the most important startup, tech and venture capital news in a single package.

Daily Crunch: Wearable health tracker Oura has sold more than a million rings

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After Anaplan, which SaaS company will private equity target next?

The stock market hasn’t been kind to SaaS companies in recent quarters, which makes us wonder if we’re seeing the beginning of a trend of private equity taking aim at vulnerable SaaS firms.

10:04 am PDT • March 21, 2022
After Anaplan, which SaaS company will private equity target next?

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When raising at a 40x multiple makes sense

With a $4 billion valuation and roughly $100 million ARR, Webflow is valued at precisely the number that we cast as a figment of yesteryear.

7:08 am PDT • March 18, 2022
When raising at a 40x multiple makes sense

The venture capital market is retreating somewhat from its aggressive 2021 pace, new data indicates.

New data shows how far VCs are pulling back on US Series A, B, and C valuations

What’s your startup worth with a single-digit revenue multiple? For startups building software in the last few years, the question may sound unnecessarily harsh. It’s not.

Your startup raised at 40x revenue. What’s it worth at, say, 6x?

For most products, TAM is presented in nine figures or more, but when you’re planning to disrupt a billion-dollar market, these numbers can create a lot of cognitive dissonance.

TechCrunch+ roundup: Tested TAM tips, no-code tech survey, writing crypto white papers

For startups, the lesson here is that no matter how well you did in 2021, investor sentiment appears more tied to what you are projecting for this year than anything.

For startups, the message is clear: Grow fast or die