onlycfo.io · 2023-07-14
· 1056d
Praying for Growth & Exits: How to Achieve the Best Possible Financial Outcome
Growth-stage software companies face a critical strategic choice between aggressive growth targets, cash preservation, or balanced approaches given constrained runways and difficult fundraising markets. The article argues that 'default investable' and 'default alive' are the two primary outcome targets, with strategic and PE acquisitions as alternatives, and emphasizes that efficient revenue growth rather than unfunded hockey-stick projections determines optimal financial outcomes.
Metrics in this report
MosaicML Acquisition Revenue
20.0million dollars
At time of Databricks acquisition for $1.3B
PE Tech Acquisition Revenue Multiple
4.9x revenue
median
Tech company PE acquisitions
Strategic Acquisition Revenue Multiple
65.0x revenue
AI-space strategic acquisition (MosaicML/Databricks example)