tomtunguz.com · 2019-12-19
· 2359d
5 Predictions for 2020
Tunguz forecasts five major trends for 2020: direct listings becoming the standard IPO method, M&A activity reaching ~$200B (15% growth), distributed work becoming mainstream pre-50 employees, SaaS valuations remaining elevated at ~9x multiples, and a strong fundraising environment. He also reviews his 2019 predictions, scoring 3.5 correct and 2.5 incorrect.
Metrics in this report
Gross Margin
50%percent
minimum
SaaS companies achieving IPO in 2019
SaaS Penetration Rate
20-30%percent
Estimated market penetration as of 2019
SaaS Valuation Multiple
9revenue multiple
median
Public software companies in 2019-2020
Software M&A Growth Rate
25%percent
Year-over-year growth from 2018 to 2019
Software M&A Volume
170billion USD
Actual 2019 software M&A market size