August 12, 2020
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As Q3 kicks off, four more companies join the $100M ARR club – TechCrunch

What do investors bidding up tech shares know that the rest of us don’t? – TechCrunch

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Biggest story The exit from the boom after the March market led to an explosive increase in the value of technology stocks. In particular, software companies are in the process of recovering; According to the March minimum, estimates of state-owned software companies have more than doubled. SaaS basket and cloud stocks compiled by a Silicon Valley venture capital firm.

These achievements are good news for startups of all sizes. For novice beginners, appraisal of software share helps provide a welcoming public market for exits. And strong public valuations can help channel private dollars to relevant startups, while supporting capital inflows.


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For software-oriented start-up companies, especially those who use fixed-income models like SaaS, this is an amazingly good time to live.

Indeed, after COVID-19 hit the United States, layoffs and software sales growth were key, troubling indicators coming out of a startup. Since then, the data has turned around.

As TechCrunch reported in Junestartup layoffs have declined, and software outflows have recovered to the point that business and enterprise-oriented SaaS companies are on the rise.

But instead of just recovering to a level close to that of COVID, software stocks continue to grow. Indeed, the Bessemer Cloud Index (EMCLOUD), which tracks SaaS firms, has set many historical highs in recent weeks.

There is some kind of logic in the rally. After conversations with venture capitalists over the past few weeks EQT VenturesAlastair Mitchell, sapphire Jai das, and Shomik Gosh of Boldstart ventures Paint a picture of the potential acceleration of digital transformation for some software companies that have advanced COVID-19 and its related implications.

The result of this trend may be that the common addressable market (TAM) for the software itself is larger than previously thought. An increase in TAM could mean an increase in future sales and more substantial future cash flows for some software companies. This argument helps explain some of the current market enthusiasm for shares of public technology, especially shares of software companies.

We will not be able to explain every moment that the Nasdaq received. But the argument of TAM is worth understanding if we want to seize on most of the optimism that helps stimulate technological assessments, both private and public.


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