Insight certainty 4/5 debate potential 2/5

Ball: Public-caliber SaaS companies must sustain 30% to 50% growth at $100M+ ARR

Jamin Ball · Ed Sim & Jamin Ball: Did Figma Kill M&A Markets & 3 Requirements to IPO in 2024 | E1101 · 20VC with Harry Stebbings · Jan 10, 2024 · at 29:15

Jamin Ball, Partner at Altimeter Capital, explains the quantitative growth and scale benchmarks required for software companies to successfully go public.

0:00 / 0:16exact quote · 16.2s
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“And when I say public market type company, what does that mean? It's you are sustaining growth at a 102 hundred million plus of ARR, right? Sustaining, meaning you're growing, call it 30, 40, 50% plus. The universe of companies that can do that is Very small, right?”

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More from Jamin Ball

Prediction Open · timeframe Jan 2029
Ball: Most 2021 mega-round startups will never reach their peak valuations
“I think there's the vast majority of companies who raise these mega rounds in 2021. Will probably never be worth at any point in time, right? The valuation that they were given in the public markets.”
Jamin Ball Jan 10, 2024 ▶ 20:34 Ed Sim & Jamin Ball: Did Figma Kill M&A Markets & 3 Requirements to IPO in 2024 | E1101 · 20VC with Harry Stebbings
Assertion Supported
Ball: ZIRP-era funding rounds lacked ratchets blocking down-round IPOs
“The reality of the moment we live in today is a lot of these zerf rounds, they didn't have ratchets. It was the opposite. They were very light on terms and they were very light on structure. So you don't have this Dynamic of super heavy ratchets, anti-dilution…”
Jamin Ball Jan 10, 2024 ▶ 54:36 Ed Sim & Jamin Ball: Did Figma Kill M&A Markets & 3 Requirements to IPO in 2024 | E1101 · 20VC with Harry Stebbings
Prediction Not checkable as stated
Ball: Down-round IPOs will become normal despite the current taboo
“I think kind of down rounds or down round IPOs will be the same thing. There'll be a taboo on them, but they'll be normal.”
Jamin Ball Jan 10, 2024 ▶ 1:01:48 Ed Sim & Jamin Ball: Did Figma Kill M&A Markets & 3 Requirements to IPO in 2024 | E1101 · 20VC with Harry Stebbings
Prediction Didn’t hold up
Ball: Regulatory opposition will block large-scale tech M&A in 2024
“From a regulation standpoint, it is really hard to see any large-scale M&A.”
Jamin Ball Jan 10, 2024 ▶ 44:10 Ed Sim & Jamin Ball: Did Figma Kill M&A Markets & 3 Requirements to IPO in 2024 | E1101 · 20VC with Harry Stebbings
Assertion Partly supported
Ball: Software venture funding fell 90% from peak to 2016-2017 levels
“Really, twenty-twenty-one and probably the first half of twenty-twenty-two, and now in twenty-twenty-three, we're down 90% from where we were at the peak, but we're really just back to the 2016, 20 17 trend line, right?”
Jamin Ball Jan 10, 2024 ▶ 5:59 Ed Sim & Jamin Ball: Did Figma Kill M&A Markets & 3 Requirements to IPO in 2024 | E1101 · 20VC with Harry Stebbings
Insight
Ball: True founder-friendliness requires investors to have hard conversations
“To be a truly founder friendly investor and board member. It is about having those hard conversations. It's not about shying away from conflict.”
Jamin Ball Jan 10, 2024 ▶ 14:38 Ed Sim & Jamin Ball: Did Figma Kill M&A Markets & 3 Requirements to IPO in 2024 | E1101 · 20VC with Harry Stebbings
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