Steve Sloane Contributor Steve Sloane is a partner at Menlo Ventures where he
In both the public and personal markets, appraisals for B2B software application business continue to climb. The average publicly traded cloud company trades at nearly 12x forward income, while in the personal markets, investors are substantially more aggressive. With record levels of private capital, continued outperformance in the general public markets and an absolutely no interest rate environment, it can be tough to think of an impetus for slowing down this runaway software train (even the COVID-19 pandemic has not yet succeeded!).
Just four or 5 years back, outsized exits in the business sector were outliers. In 2016, we built the slide below (showing value at the time of IPO/acquisition) to show the dominance of large B2C exits. Back then, the 14 most considerable venture-capital results came from customer business, and the very first enterprise result listed was LSI, a semiconductor business acquired for $6.5 B in 2014.
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