Pricing pressure on software startups is easing.

Startup Stories

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are you tired Bad news for beginners? Tired of layoffs, budget cuts, and preaching from people who suddenly discovered the gospel of efficiency?

Well, how about some good news? I’ve got some for you: software reviews have made a bit of a comeback this year.

When we refer to startups, we generally mean tech-focused startup companies. Of course, there are restaurant chain startups and, I think, ceramics startups and all those fast-growing businesses. But startups with capital S Small tech companies, often driven by venture capital dollars, hope to grow quickly. And this means in practice, software companies.


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So if software prices are recovering this year, we can assume that startups, in general, are seeing some valuation pressure come off their backs. As we expect many startups – early and late-stage – to raise capital this year, any positive movement in valuation terms is welcome. For many companies, it can smooth the path to capital at a cost that is less favorable.

Are we seeing a significant improvement in software revenue? No, but given how far valuation multiples have fallen, even a 1x gain is material. Let’s investigate.

Up, up, down, up, up

In the year It took less time to fill the startup valuations we saw in late 2021. In the year By the middle of 2022, it was clear that early technology companies are operating in a different environment and that the advance prices for their equity are no longer washed away.

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