This year’s Bessemer Venture Partners’ annual Cloud 100 Benchmark report was published recently and we looked at some broad trends on the top private cloud companies in the report. This, along with the six years of insights that BVP provides reveals an interesting trend which shows that cloud companies have shown exponential growth and are consistently being valued higher.
Here are some interesting highlights from the report.
- The cloud 100 list value has increased to $518 Billion, a 5X growth since 2016. At $267 Billion in 2020, the year-over-year (YoY) growth has been a phenomenal 94%.
- The average valuation of the top 100 cloud companies stands at and astounding $5.2 Billion with every company on the list hitting at least a unicorn milestone.
- With cloud companies taking an average of 8.6 years to reach the unicorn milestone as per the 2021 list, the growth has been steep with the average being 12.1 years in 2016.
- Valuations have grown primarily due to higher growth rate and higher multiples being paid. In 2016, the average valuation was 9 X ARR which has grown to 34 X ARR in 2021, a growth of approximately 270% in the last six years. However, the average revenue has grown approximately 90% in the same time period.
Source : Bessemer Venture Partners’ “The Cloud 100 2021 Benchmarks Report”