The IPO market remains open despite the turbulence of the public markets because institutional investors still hunt greater than market returns. Multiples of SaaS businesses have remained at highs: still trading as of today, which is 45% over historic averages forwards in 8x.

The Monoclouds continue to challenge the open source ecosystem by providing hosted providers of popular projects. This may force up-the-stack to be moved by startups to the platform and application tiers.

The M&A marketplace slows meaningfully, especially in the multi-billion dollar level. The recent seasickness in the markets compels most CEOs embrace a conservative way of acquisitions. Facing swings in evaluation, these leaders might struggle to advocate and articulate that acquisitions are accretive and will be rewarded by share admiration after an acquisition.
Anticipating a great 2019. Happy holidays to everybody.
Below are some predictions for 2019 and a review of my ideas for 2018, a lot of which were wrong.

  1. The tax holiday for repatriation creates among the very active M&A environments of the past ten decades. Software M&A volume neared $100B than any year. There were many take-privates, imports the afternoon before the IPO (two of these ), and traditional M&A. The thing may have been the multiples which were than in recent decades.
  2. The SaaS fundraising market remains ebullient via 2018 as vibrant M&A and an open IPO window activate substantial liquidity for investors . Right. SaaS fundraising remained powerful. Volumes relative to 2017 didn’t alter materially, though. To a degree. Chatbots have faded and thus has the notion of employing ML to everything with the thesis it will differentiate the product in market, although there continue to be many pitches with ML.
  3. Blockchain in the enterprise takes the predominate as the buzzword for 2018. *Wrong. In retrospect, Kubernetes is the technology for 2018 that broke out, both in VMWare and adoption ’therefore purchase of Heptio.
  4. The traditional open source approach of the previous fifteen years is abandoned because of the aggressive threats from infrastructure-as-a-service (IaaS sellers ). Proper. Amazon launched competitors during its yearly Reinvent conference to a lot of startups at the database tier.
  5. GDPR becomes a significant consideration in the majority of SaaS businesses. Incorrect . Regulations like GDPR remain important, but after the first anxiety and slower earnings cycles, it seems to me that these regulations have become no different than SOC2 and ISO compliances. A price of doing business.
  6. Businesses emerge that create opinionated stacks for different functional roles and simplify day-to-day tasks for information workers. Wrong. We didn’t even see this in 2018 at all!

Startups start to siphon off important but underserved segments of SaaS incumbent’s customer bases. 1% of Salesforce’s revenue produces a unicorn. This will happen in all major SaaS categories, goods serving VPs of Sales Marketing, Engineering, and customer care.
Photo by Ramón Salinero on Unsplash

Data technology is the new Customer Success. A decade past Customer Success wasn’t anyone’s lips. There were not any VPs of CS in most applications companies. Of moving data well, the discipline, data technology, will have a breakout moment, complete with conventions, thought leaders.
Blockchain technology finds its second killer application. After all the hype and ICO-mania at 2017, the flurry of startups trying to solve every startup using a distributed ledger and the collapse of monies in 2018, one startup emerges in 2019 with another killer use instance; Bitcoin being the first. I guess the killer application will not be currency a consumer product, although predicated.