On Aug. 5, TechCrunch wrote that startups “should go public while software reviews don’t make sense”. What came next was a happy accident. Just weeks after this post, Unity, JFrog, Asana, Snowflake, and Sumo Logic signed up.
Today we see some data from those debuts, especially the incredibly strong prices from JFrog and Snowflake. Additionally, Snowflake opened for $ 245 or $ 269.50, depending on the data source. Regardless, the company’s stock is currently worth $ 276.2 per share, roughly 1
In addition to the Snowflake for example, JFrog opened today a value of around $ 71.30, which is well above JFrog’s value over one already-raised-range IPO price of $ 44. This is wild! JFrog is now valued at roughly $ 7 billion, despite only posting sales of $ 36.4 million in the last quarter.
The message of today’s debuts seems to be that valuations aren’t tied to old rules – right now – and that companies that can grow 100% or more have little cap.
Our snack: Go public now.
On top of the good news, some of the reviews that we understood less than others hold up. Today’s first day pop and drop market isn’t. For example, Lemonade is still about 50% up on its IPO price and OneMedical is up 100% on its own price. Software reviews are so wild that even software-related companies benefit from them!
This is excellent news for a large number of unicorns. The good times are amazingly still here while the economy is still pretty bad and the elections are imminent. All these old rules of having quarters of profitability one after the other and not going public in turbulent years are nonsense for now.
Normality will reappear at some point. Things will settle down at some point. But not yet, so get the S-1 out and take advantage of the good times while they last.