11 July 2022
Revenue multiples have returned to pre-2020 levels for high growth software companies, based on Octahedron's index. The downturn in valuations was accompanied by a 23% year-on-year decline in March quarter VC funding for late-stage and technology growth funding, crunchbase calculated - although it found seed and angel investment held up better, growing 9% year-on-year. The Information found VC firms buying listed tech stocks, meanwhile consensus data from FactSet shows the tech sector is not expected to have been among the strongest growth areas of the S&P 500 in the June quarter - energy and materials stocks have the most expected of them. Kailash Capital shows that price growth for the S&P 500 in the 2017-2021 period has doubled the long-term average return. Finally, Bloomberg charts the rise of self-employment in the US.
Octahedron Growth Software Index (EV / NTM Rev)
Global Venture Dollar Volume by quarter
Global Seed and Angel Investment by quarter
VC Firms Buying Publicly Listed Shares
Source: The Information
S&P 500 Revenue Growth Expectations
S&P 500 historical average returns
Source: Kailash Capital
Americans increasingly shifting to self-employment
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