Keep pulling the thread on Ryan Smith.
Ryan Smith states there is a massive valuation dislocation between public and private markets, with the average public tech company trading at a 3.5x multiple while over 100 private companies trade at an average 25x multiple.
Ryan Smith predicts that due to the lack of large M&A exits, nearly every highly-valued private tech company will have to pursue an IPO.
Jubin states that AI companies like Harvey and Sierra have grown from zero to approximately $200 million in revenue within two years.
Ryan Smith notes that Atlassian's market capitalization has fallen from a peak of $140 billion to $18 billion.
In its 2017 funding round, Qualtrics accepted a $2.5 billion valuation despite receiving offers as high as $4 billion.
SAP acquired Qualtrics for $8 billion in 2018, halfway through Qualtrics's IPO roadshow.
In 2011, prior to raising its first venture capital round, Qualtrics was generating $36 million in revenue and $24 million in cash flow.
In 2011, Qualtrics turned down an acquisition offer from SurveyMonkey in favor of a Series A funding round from Sequoia and Accel, even though the venture round valued the company $150 million lower than the acquisition offer.
Ryan Smith states that the average public tech company trades at a 3.5x multiple, while over 100 private tech companies are trading at an average multiple of 25x.
Qualtrics was spun out of SAP as a public company approximately two years after being acquired.
Ryan Smith asserts that Qualtrics's ability to maintain its independent go-to-market team was the single most critical factor that enabled it to spin out from SAP and go public again.
Silver Lake led the deal to take Qualtrics private again, a process that attracted interest from every major private equity group.