      Tomasz Tunguz Blog · 2024-01-29
      · 857d
    

Security and Data Software Sectors Drive 2024 Growth with Premium Valuations

Security software emerges as the fastest-growing sector in 2024 with 29% expected revenue growth, followed by Data-as-a-Service at 23%. Security and Data companies command premium valuations at 10x enterprise-value-to-forward-revenue multiples compared to 5x for other software categories, signaling buyer priorities that are expected to cascade into private markets.

5 metrics· Cited 0× in the knowledge base ·Open source ↗

Metrics in this report

EV/Forward Revenue Multiple - Other Software

5x

mean

Public software companies, early 2024

EV/Forward Revenue Multiple - Security & Data

10x

mean

Public software companies, early 2024

Revenue Growth Rate - Data/DaaS

23%

mean

Public software companies, 2024 expected

Revenue Growth Rate - Fintech & SaaS

13-19%

mean

Public software companies, 2024 expected

Revenue Growth Rate - Security

29%

mean

Public software companies, 2024 expected