Snyk just took a Series G round at a $7.4B valuation, down from $8.5B in Sept 2021. I don't know for sure what their ARR is, but it's likely around $200M now. And their ARR growth is about 100%. Maybe you've never heard of Snyk, sub in any late state SaaS unicorn with similar numbers - I'm not trying to kick them while they're down. I'm trying to understand how this valuation makes sense. I was watching this great conversation on the All-in Podcast - https://www.youtube.com/watch?v=RDdjA4yJy88&t=3071s - where they are talking about SaaS valuations and suggested 5x ARR for a slower growth company and 10-20 x ARR max for a high growth one which they defined as 2-3 x ARR growth per year. Snyk would fall somewhere in the between with it's 100% ARR growth. At the low side, that puts them at $1B valuation (which I don't think is right either, given that they're still growing quite a bit) and on the high side, $2-4B. Are they lucky to have landed this latest round in the current economic conditions? Seems to me that their valuation is going to fall significantly in 2023 if the macroeconomic trends continue. Another point from the podcast is that the B-to-B buyer is going to be smaller in 2023 because of all the layoffs... less employees, less licenses required for stuff like this. Do you think there's any chance this thing IPOs for north of the series G price? Or frankly, even gets acquired for half of it? #ipo #valuation
If they ipo now they won’t be worth anything more than 2 bill, you are lucky to get 15x multiple on revenue in this market.
I am not sure of how well synk is doing. But for it to defend this valuation maybe they must have the following. (What they NEED to defend their valuation) 1.) A market where they can keep growing 100 % for 5-7 years 2.) They are FCF positive anddd they drastically control their expenditure and keep their bottom lines increasing as top line increases. 3.) They are about the only big player in the space and their success can't be replicated easily
Scamath is ready to pump and dump again
You referring to the SPACs?
> likely around $200M if you don’t know, how’d you come up with that? at these very late rounds like G it’s also critical to know how much was raised and who put it up you can’t simply declare 37x is too rich (but i suspect it is)
I heard from some insider that 200M is not off
In some reddit threads, it was mentioned that their 2020 ARR was around 15mil.
I find that unlikely they hit 100 mill in 2017 “In March 2017, Snyk closed its first commercial contract. By August 2017, two years after starting the company, they hit their first $100k in ARR. “ https://www.unusual.vc/post/snyks-oh-sh-t-moment
The numbers are a lot larger than that these days. And even that stated 2020 number is slightly low from what it actually was. It has been exponential growth. I think there is probably some overvaluation like most unicorns these days, but I can say with confidence that the Series G wasn't out of nowhere and the internal numbers do justify the raise.
They recently hit 200M ARR , heard from a friend.
37x. reasonable i suppose
You said before it’s critical to know who put the money up in these late rounds. Can you explain more?
https://www.calcalistech.com/ctechnews/article/skghv7kk3 What about that? Is this the new valuation?
I don’t think small secondary transactions constitute a new “valuation”. Snyk execs were good enough to allow the former employees that they laid off to sell some equity to be able to buy there options, or just otherwise get some money. To be fair, that’s pretty great of them.
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You will not find anyone who can give a sensible valuation model for Silicon Valley unicorns, because nonsensical valuations are the norm. It is worth what someone will pay. Whether that translates to there being a bigger fool in the future is anyone’s guess.