If the software you use did get more expensive, though, odds are you'll have noticed already. Most software stayed the same price over the past year. That helped make software pricing last year more boring.Īnd yet, it's still easy to pay more for software today than last year. Newer SaaS startups found what pricing made sense. Traditional software mainstays migrated fully to subscriptions. Over the past few years, software pricing has almost stabilized. Pricing that might have made you second-guess started feeling worth it, though, when your office could go virtual on a whim. Where a few hundred dollars might have bought you a copy of Office a decade ago, today your team might pay a few hundred dollars a month for your software, $9/month here and $12/month there. Software got more expensive over the past decade largely as tech moved from one-time licenses and upgrades to per-user subscriptions, and as we moved from traditional office suites and email to using dozens if not hundreds of SaaS tools to collaborate. The gradual shift from in-house servers and native, single-user software to subscriptions and the cloud meant you could pick up where you left off, anywhere. It's hard to imagine 2020 without Zoom, without Slack, without the dozens of SaaS tools that let millions of people instantly move the office into their homes. Tech, in many ways, patched the loose ends. Your software likely didn't get cheaper last year-but it also likely didn't get much more expensive. The 2021 Software Inflation Rate is only 1.4%, less than 2020's inflation rate of 2.2%, and far less than the average 5% annual software price inflation seen over the previous decade. Software prices, largely, haven't inflated nearly as much as the broader market this year. That's been illustrated most dramatically by lumber, with prices for wood almost quadruple what they were last year.Īfter a decade where software got 62% more expensive, you'd almost expect the price of digital goods to keep rising, faster if anything.Īnd yet, they didn't. Let’s take a look.After decades of relatively low inflation rates- averaging 1.2% a year in the US since 2000-suddenly prices are rising again, especially in the US where consumer goods, on average, cost 5% more this year and inflation is predicted to hit 3.4%. So, color us more than curious.īut before we sign off, we have new numbers from Backblaze that give us a nibble at its Q3 results. And when double-digit multiples applied to profit and not revenue. Its IPO is a harkening back to the time when it was somewhat difficult to convince private-market investors to value your company in the nine-figures, let alone 10. Which makes Backblaze nearly unique from our perspective. The examples roll from memory: Robinhood was worth dozens of billions when it went public Coinbase was as well when it direct listed NerdWallet is going to be a public unicorn merely on the strength of the written word and AllBirds? More like AllUnicorn. Indeed, even some of the smaller or less traditional companies that we’ve seen debut in recent quarters have had valuations north of $1 billion. Which is notable given the sheer heft of many tech companies we’ve seen go public lately. That means that Backblaze is going public as a non-unicorn. Quick extrapolation indicates that at the top end of its price range, Backblaze’s IPO could value the storage firm at $684.3 million. Notably the company’s fully diluted valuation is quite a bit higher, with Renaissance Capital reporting that at $16 per share, Backblaze’s valuation inclusive of shares that have been earned, if not yet exercised via options or similar, to be $644 million. And it has, namely an S-1/A filing indicating that the company expects to price its IPO between $15 and $17 per share.Īt its IPO price range and 28,545,893 shares expected to be outstanding after its IPO, Backblaze is worth $428.2 million to $485.3 million. Since it was smaller in revenue terms than most tech companies going public these days, we deferred on judging its worth until Backblaze itself provided some guidance. But when it came to pricing, we had little idea of how to value the company. With a central core of content to help power customer acquisition and a huge swath of customers, it was an interesting cloud storage play. When Backblaze first filed to go public, TechCrunch found it a compelling company.
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