AI Reigns Supreme: OpenAI Tops the Cloud 100 Benchmarks Report
OpenAI, the owner of ChatGPT, has secured the coveted No. 1 spot on the Cloud 100 Benchmarks Report 2023, an annual ranking of the top private cloud companies. This achievement highlights the rapid rise of artificial intelligence in the tech industry. Additionally, four other native AI companies – Anthropic, Midjourney, Hugging Face, and DeepL – made it to the index this year.
Bessemer Venture Partners, a prominent investor in the cloud sector, evaluates companies based on market leadership, financial metrics, valuation, and team composition for inclusion on the Cloud 100 list. According to Mary D’Onofrio, a partner at Bessemer Venture Partners, this year was particularly challenging, with a minimum valuation requirement of nearly $1.5 billion.
Unlike previous years, only one company, Figma, dropped out of the leading 100 cloud company list. However, Adobe’s pending $20 billion acquisition of Figma indicates its high acquisition multiples, reaching 50x revenue.
Search less. Close more.
Experience revenue growth with all-in-one prospecting solutions powered by the leader in private-company data.
This year’s Cloud 100 index prominently features AI-related companies. Out of the 100 companies, 55 have recently launched generative AI products or features, while 70 leverage AI or machine learning in their offerings.
While AI remains a leading theme, the design, collaboration, and productivity sector recorded the highest collective value of $110 billion. This displaced last year’s fintech sector, as some companies, including Stripe and Checkout.com, faced down rounds.
Wiz, a cloud security company, made the biggest jump in the index, climbing 67 spots to secure the 15th position. They achieved impressive revenue growth, scaling from $1 million to $100 million within 18 months.
IPO Predictions: First Half of Next Year
The Cloud 100 Benchmarks Report predicts that the IPO market will open up in the first half of next year. The top 10 companies on the index are expected to be the first to go public.
In terms of valuation, the collective worth of the Cloud 100 companies dropped by 11% compared to the previous year, totaling $654 billion. This marks the first annual decline since 2016. The average value of the listed companies also decreased, from $7.4 billion in 2022 to $6.6 billion in 2023.
The average year-over-year growth rate has slowed from 100% to 55%, with the top quartile also experiencing a decline from 120% to 70%. Revenue multiples were calculated based on companies that raised funds in the past year, with 17 companies valuing at 26x revenue. This figure remains significantly higher compared to public cloud companies, which sit at around 8x revenue. The public cloud index is growing at a slower average rate of 22%.
Mary D’Onofrio mentioned that from a growth-adjusted perspective, the market appears more rational and aligned with public markets. The willingness to pay for outsized revenue growth, combined with the potential of a company, influenced the valuation.
Crunchbase Pro Lists
To stay updated on recent funding rounds, acquisitions, and more, subscribe to the Crunchbase Daily.
Editor Notes:
Stay up to date with the latest news in AI and technology by visiting the GPT News Room.
from GPT News Room https://ift.tt/UOzvLTq
No comments:
Post a Comment