Market update time!

News, insights and updates from the team at Bloom Equity Partners

Happy Friday Founders & Friends!

Back at it again with another Weekly Bloom.

As always, if you're enjoying The Weekly Bloom, we'd love it if you shared it with a friend or two. We try to make it one of the best emails you get each week, and we hope you're enjoying it.

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Market Update: Early Stage SaaS Valuations continue to climb

Last week, PitchBook released a report on private market SaaS valuations. Here are a few items that caught our eye:

• Stock prices of public SaaS companies (SNOW, ASAN, BILL etc.) have plummeted on average ~60% off their recent 12-month highs.

• Median valuation of a late-stage software company dropped to $155 million in 2022, a 23% decline from 2021.

• Valuations of early-stage deals continue to climb, as they are more sheltered from broader market volatility.

• Median valuation of an early-stage software startups is ~$98M, up over 60% from last year.

  

Source: PitchBook

On another note- the team at Meritech Capital released a comprehensive report on public + private SaaS valuations in 2022. The team noted a few changes that software companies should anticipate if these macro headwinds continue:

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What We’re Reading and Listening To…

🎥 The Cost of Capital and How Growth Can Destroy Value

📚 TAM for Seed Stage SaaS: Overrated

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News from the Industry: deals, deals, and more deals 💰

Thoma Bravo has invested in AppOmni

Tiger Global plans to raise a new fund for private investments

Vista Equity Snags Early $9 Billion for New Fund

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Favorites from the Ecosystem

Investors👇…..

Everett Randle @EverettRandle

Summary of the last few months in venture

Sieva Kozinsky @SievaKozinsky

We’ve acquired 12 businesses at Enduring Ventures Here’s our playbook for sourcing high-quality deals:

Founders👇…..

Ryan Hoover @rrhoover

Founder DM’d me asking: “We’re seeing a lot of traction (currently bootstrapped and profitable), but we’ve been getting rejected by VCs because our product is not defensible. What does it mean to be defensible?” Sharing my response. Hope it’s useful for others.

Joe Speiser ⚡️ @jspeiser

Top 10 Critical SaaS Landing Page Requirements: a 60 second review on what to focus on for a killer converting page;

Operators👇….

MATT GRAY @matt_gray_

In 2021, I closed $2,964,500 in deals. Most people make sales too complicated. Here are 10 tactics (you can steal) to be a rainmaker:

Michael Girdley @girdley

How companies do Core Values is stupid! • Not actionable (of course “honesty” is important) • Not specific (if I’m honest, how transparent do I be?) • Not complete (only 3-5 values describe our whole culture?!) “Core values” like this say nothing about your actual culture:

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End Note 🔚

As always, if you're enjoying The Weekly Bloom, we'd love it if you shared it with a friend or two. We try to make it one of the best emails you get each week, and I hope you're enjoying it.

And should you come across anything interesting this week, send it our way! We love finding new things to read through members of this newsletter.

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About Bloom Equity Partners

Bloom Equity Partners is a lower mid-market software-focused private equity firm, leveraging deep operational and commercial experience to create enduring market value for the benefit of our investors, founders, and their companies.