CAN SUBSCALE SOFTWARE COMPANIES GO PUBLIC?

Summary from the TLDR Founders newsletter

The debate continues on whether software companies with less than $500 million in revenue can successfully go public, as private market valuations often significantly exceed public market multiples. Many companies that experienced hypergrowth at $100 million ARR have seen growth decelerate to under 20% by the time they reach $200-300 million, making it challenging for public market investors to justify premium valuations. The abundance of late-stage private capital and alternative liquidity options for employees has made it easier for companies to remain private longer.