Randle: Databricks can make pre-revenue acquisitions that would crush Snowflake's stock
Everett Randle · You Shouldn't IPO - Here's Why | Everett Randle on TBPN April 10th · Apr 17, 2025 · at 8:35
Kleiner Perkins partner Everett Randle explains why top tech startups avoid going public, pointing to public market backlash on strategic pre-revenue acquisitions.
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“The main one, or one of the main ones is that you can be a lot more aggressive on M&A. You know, Databricks, for example, you know, bought this company, Tabular. I think the reported valuation was two billion, and it was also reported that they were either pre-revenue or close to pre-revenue. If you were, you know, Snowflake and you're a public company you probably can't buy a pre-revenue company for two billion dollars. Like, your stock probably goes down 20% the next Day.”
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