The most recent collection of public companies in or orbiting the SaaS industry to offer an IPO are all worth $3 billion or close to that number. The coveted $1 billion valuation and the companies who earn it, termed “unicorns,” might be getting supplanted by the $3 billion version.
Of course, this raises one important question: Does this mean we’re going to have to start calling them “tricorns”?
The $3 Billion Companies
Box, Hubspot, RingCentral, Mulesoft, Xero, and Zendesk all make the list, as noted by Jason Lemkin of SaaStr in a recent blog post that pulls stats from Bessemer’s Cloud Index. The top dogs in the industry — Salesforce, Workday, and ServiceNow — together add up to a valuation of more than $130 billion.
This growth has been quick, too: Salesforce has grown its worth 40 times over since 2005, going from around $2 billion to $80 billion today.
“But as the cloud and SaaS, in particular, have grown faster than almost any of us expected 10 years ago, the odds of the building, not just a unicorn ($1b) but a $3b+ company have gone up dramatically.