Jason M. LemkinCEO, SaaStr · Co-Founder of SaaStr AI, SaaStr Fund, Adobe Sign

The Challenging Reality of 6x Valuations: Is the Tech Industry Stuck

28 Nov 2023 · 1 min

Watch on YouTube

0:48

This is a short transcript excerpt from a YouTube video (recorded Nov 28, 2023) in which Jason M. Lemkin and another speaker discuss the challenges of operating in a public-market environment where companies trade at ~6x multiples. Lemkin expresses concern and discouragement, notes the industry hasn't functioned at 6x since about 2017–2018, and worries that a prolonged 6x environment stresses the system even if faster-growing companies can still perform.

Chapters

My, my. I'm discouraged for the first time in my career at public multiples and I.
Am worried that.
If we stay in a 6x world that we haven't really learned to live in a world where companies are worth 6x, they get funding's.
Harder but.
We haven't lived in a 6x world for real since 2017. 28. Like if you look at Appfolio which I just wrote up today, if you look at Cloudflare, if you look at Mongo, it's almost the best it's not the best of times but it's darn close, right? That's a long time ago.
Right, so we don't, we, we, we're.
Not going right now. We actually haven't gone back to 1819. We've gone back further and I'm, I'm, I'm totally, I, I'm excited about how the fastest can grow but this multiple.
Thing, you.
Know, if it, if it, if we stay here forever, it just, it puts a lot of stress on.
The system and.
Maybe it's deserved.