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Bessemer 2024 Cloud 100 Report

Sep 9, 2024

Dive into the latest insights from the 2024 Cloud 100 report, which reveals a jaw-dropping aggregate valuation of $820 billion and a scorching growth rate of 70%, driven largely by AI companies. Discover how the top 10 firms represent nearly 30% of total enterprise value and what this means for public offerings. The hosts discuss valuation trends, the concept of 'Centaur' metrics, and the contrasting fates of large versus small SaaS businesses, all while providing a light-hearted twist on their friendship.

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Quick takeaways

The Bessemer 2024 Cloud 100 Report reveals a 25% increase in aggregate enterprise value, now totaling $820 billion for top cloud companies.

AI companies significantly drive growth within the Cloud 100, with valuations surging to $176 billion and representing 21% of total enterprise value.

Deep dives

Overview of the 2024 Cloud100 Report

The 2024 Bessemer Cloud100 report highlights a significant growth in the collective valuation of the top cloud companies, now standing at $820 billion, representing a 25% increase from the previous year. Even amidst challenges in public cloud valuations, the private sector has shown resilience, with remarkable valuations such as the average multiple of 23X ARR. This report remains a key benchmark in the tech industry despite its limitations, as it filters out the top 100 cloud companies and analyzes their performance. A notable takeaway is the understanding that while individual company statistics can be impressive, they may not always reflect the realities of smaller startups trying to achieve similar success.

Intro

2min

Cloud100 Insights: Valuation Trends and AI Growth

11min

Analyzing Valuation Multiples of Elite Cloud Companies

3min

Cloud 100 Growth Insights

4min

Contrasting Realities in the SaaS Industry

3min

Bessemer Venture Partners recently released their 9th annual Cloud 100 Report. Dave "CAC" Kellogg and Ray "Growth" Rike dive deep into the impact of AI companies on the top 100 private cloud companies which increased their aggregate enterprise value to $820B and increased their growth rate to 70%!

Key highlights Dave and Ray discuss include:

Aggregate enterprise value of the Cloud 100 increased 25% year over year
Average growth rate increased from 55% in 2023 to 70% in 2024
97% of the Cloud 100 will be over $100M ARR by the end of the year
Top 10 companies in the Cloud 100 represent ~ 30% of the total Enterprise Value
Ai companies represent the top category of the Cloud 100 EV (21% of total)
EV:Revenue multiples are down YoY (23x) but still at very attractive levels

As a follow-on to the BVP "State of the Cloud 2024 Report" the Cloud 100 highlights the era of AI has moved from hype to reality as measured by growth rates and enterprise value!

If you are interested in the latest "CLOUD" industry trends as measured by company value, revenue growth rates and industry impact this episode is a must listen!

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