Andy Roberts is pictured in a new window.
The flow of capital in the software as a service industry is becoming more separated. There are two groups of companies that have revenue growth of over 30% and two groups of companies that have not.
The haves were separated from the rest by a large margin. The average EV/revenue multiple for companies that grew over 50% and those that grew 30%- 50% in the last year has increased by +28.6x.
Identifying why certain companies are haves and how they remain that way is the real trick. What is it about companies like Monday.com and Asana that drive their outsized valuations? Are there strategies or tactics that management teams can use to maximize this outcome?
Over time, growth in EV/revenue. The image is from Open View Partners.
There are three key steps to becoming a have.
Execution against large and growing opportunities.
