Thursday, November 21, 2024
8.4 C
New York

Rejoice, for startup valuations are slowly recovering

We have good news for tech companies big and small this fine Wednesday morning: valuations are heading higher, though at a modest pace.

New public market data indicates that software stocks are rising to their highest points so far this year. To make it sweeter, the underlying revenue multiples at public companies are expanding as well, especially at the faster growing subset of software companies.


The Exchange explores startups, markets and money.

Read it every morning on TechCrunch+ or get The Exchange newsletter every Saturday.


Investors today seem to think public software companies are worth more per dollar of revenue in aggregate. That will lift some pressure from startups struggling to raise new capital at attractive prices or harmonize legacy private-market companies’ valuations with their hoped-for IPOs. Clearing the massive startup liquidity backlog will take more than a modest reinflation of software valuations, but it’s a start.

Starting with high-level numbers, here’s a look at the Bessemer Cloud Index’s performance this year. Note that the value of the constituent companies kicked off the year strong, gave back most of those gains, and then starting in May, began to pick up steam once again (YCharts data):

Image Credits: TechCrunch/Y Charts

source

Hot this week

Banking as a Service: Meaning, Examples, Benefits and Future

The push for open banking has led to a...

What is Fintech?

Fintech: A term used to refer to innovations in...

Best fintech blogs and websites

Fintech (financial technology) has been an interesting part of...

How to buy shares online

Buying shares online in India has come a long...

Is it worth investing in life insurance over 60?

Is it worth investing in life insurance over 60? As...

TrueLayer Cuts Workforce Amid Profitability Push and $50M Funding Boost

Workforce Reductions: TrueLayer, an open banking payments company...

Amundi Acquires Aixigo to Expand Wealth Management Technology Offerings

Strategic Acquisition: Amundi, Europe’s leading asset manager with...

Celero Commerce Acquires Precision Payments to Expand SME Payment Solutions

Acquisition Announcement: US fintech Celero Commerce has acquired...

Trust Payments Appoints Laurence Booth as New CEO to Drive Growth

Trust Payments, a leading London-based paytech company, has...

NatWest Partners with NCR Atleos to Modernize 5,500 ATMs

NatWest Group has expanded its collaboration with NCR...

Gate City Bank Partners with Alkami for Enhanced Digital Banking Solutions

Gate City Bank Embraces Alkami's Technology: North Dakota-based...

UK Government Unveils Strategy to Boost Financial Services Growth and Innovation

Driving Competitiveness in Finance: The new Labour government,...

Related Articles

Popular Categories

spot_imgspot_img