#085: The Latest on SaaS & AI Multiples, Breaking Down Bains Top 50 vSaaS Startups, Exec Offsites
#085: The Latest on SaaS & AI Multiples, Breaking Down Bains Top 50 vSaaS Startups, Exec Offsites
One vSaaS breakdown. One biz story. One 'how to'. In your inbox once a week.
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Alright, let’s get to it…
One Biz Story
The Latest on AI and SaaS Multiples
I scoured the latest AI and SaaS multiple reports and summarized them all for you.
Here’s the latest on SaaS:
The SaaS markets absolutely crashed in November of 2021. It’s been a brutal ~3 years for a lot of us. That trend continues but it looks like we’ve bottomed out…
How fast your growing ARR has a big impact on the multiple you can expect for your business…
And of course, retention, the lifeblood of SaaS can really lift your multiple. Tie this in with a strong growth rate and you will see a premium.
Industry matters. And of course, EdTech is always the ugly step child :-) Where I’ve spent the last decade! Tough market.
Now, do you want your mind blown?
Compare that to what we’re seeing in AI start-ups…
Here are the top companies Valuations, Revenue, and multiple…
Far different from the top dogs in SaaS, who are trading at ~15X.
But, looking at all AI companies that have announced, their pre-seed and seed valuations are still insanely higher than SaaS…
One interesting thing to note here is a ton of these dollars are coming from corporate VC’s. Which has not been the historical case in SaaS.
It’s also not clear how much these corporate VC’s are investing in $$ versus cloud credits.
The conclusion? This can’t last forever. But man is it a good time to be an AI start-up compared to SaaS. Why do you think everyone is throwing AI in their name these days, even older companies 😭 😭
One vSaaS Breakdown:
Breaking Down Bain Capital & Headlines Top 50 Emerging Vertical SaaS Companies
Bain Capital & Headline just released their 2024 Top 50 Emerging Vertical SaaS Companies List.
They didn’t actually share what the companies did other than a few highlights they called out.
So I decided to do it to get a better idea of where the latest and greatest vSaaS companies are focusing.
Here it is:
1. Albert: Provides AI-driven marketing solutions.
2. ARCH: Architectural design collaboration.
3. Axle: Streamlines healthcare operations with SaaS solutions.
4. BAND: Provides collaborative tools for musicians and artists.
5. Basetwo: Infrastructure automation.
6. Blumen: Plant care and gardening app.
7. Bolo Ai: AI-driven customer support.
8. Boon: Employee benefits administration.
9. Brace Health: Orthopedic care coordination.
10. Buildvision: Construction project management.
11. Cargado: Logistics management platform for cargo transportation.
12. Cascade: Sustainability and environmental compliance.
13. Didero: AI-driven content moderation.
14. Dirac: Audio technology for high-quality sound processing.
15. Eve: AI-powered event planning & management.
16. Forage: Career development and job matching.
17. Gaiia: Sustainable fashion supply chain.
18. Garden: Home gardening and landscaping solutions.
19. Latent: AI SDK
20. Leucine: Nutritional supplement and health optimization.
21. Magic School: AI for Schools
22. Masava: Large file transfer for creative professionals.
23. Materia: Material science and engineering solutions.
24. Mithril: Gaming community engagement platform.
25. NormAI: Workplace inclusion and diversity analytics.
26. Pallet: Sustainable packaging and supply chain management.
27. Photon: Photonics and laser technology solutions.
28. Pika: Energy-efficient building design and construction.
29. Playground: Childcare management software for schools and centers.
30. Ply: Feature SDK's
31. Polimorphic: Customizable workflow automation.
32. Psci AI: Procurement AI Software
33. Quindar: Data analytics for industrial processes.
34. Quarter20: Sustainable materials sourcing.
35. Realm Alliance: Real estate investment management.
36. Revv: Car calibration vSaaS.
37. Rogo: Ride-sharing and transportation services.
38. Scope: AI-driven social media analytics.
39. Sesame Sustainability: Sustainability reporting.
40. Silna: Data analytics for retail and consumer behavior.
41. Squint: AR & AI for Manufacturing
42. Streamline: Workflow automation and process optimization.
43. Tamarack: Real estate investment and property management.
44. Tennr: Sports and fitness coaching platform.
45. Tradespace: Construction project collaboration and management.
46. Trunk Tools: Data integration and transformation.
47. Trayd: Industrial IoT and predictive maintenance.
48. WingWork: Freelancer management platform.
49. Build: Construction project management and scheduling.
50. Zocks: Inventory management for e-commerce.
A couple of thoughts here…
First -- I LOVE Squint AI - AI & AR for manufacturing.
A ton of hands-on workers still do not have the power of the internet at their close fingertips while working. Squint is trying to change this.
Second -- I really like ARCH, they are building an AI Co-Pilot for investment firms that uses AI to analyze & automate to tax automation, capital calls, distributions, and LP reports. Very cool.
Finally -- Cargado. They are building cross-border logistics software.
Logistics is massive, and honing in on cross border makes a lot of sense to me. Massive, massive, industry. I'd bet a lot of this is crazy antiquated...
One ‘How To’:
Exec Offsites
Are you having an offsite AT LEAST 2X a year with your management team?
My perspective: They are literally THE MOST valuable / important meetings of the year. They solidify alignment, and create the roadmap for the rest of the company for the next ~6 months.
If not, why not? Maybe time to rethink that!
Have a product or service that would be great for our audience of vertical SaaS founders/operators/investors? Reply to this email or shoot us a note at ls@lukesophinos.com