Sorry I’m not sorry but this will be some heavy stuff… with some Ai help to analyze it all of course. Maybe we can get our old S-1 club back up and running!? Yay.
Also Canva hired a CFO, so an IPO will happen eventually. But to show you the current state of the tech startup VC world, this chart is kind of mind blowing… trying to confirm but this might be the first time in history that the secondaries market is bigger than the IPO with the rumored $7-$9B Databricks is about to do 🤯
What is ServiceTitan?
ServiceTitan is basically Salesforce for everyone else.
CRM (Customer Relationship Management):Sales enablement, marketing automation, and customer service.
FSM (Field Service Management):Scheduling and dispatching.
ERP (Enterprise Resource Planning):Inventory management.
HCM (Human Capital Management):Compensation and payroll integration.
FinTech:Payments and third-party consumer financing.
Revenue Growth is Solid But Now Wow.
Let’s jump right in: exciting startups going public often command premium multiples, especially when compared to the average public SaaS companies trading at around 7x revenue. Assuming they aim to IPO at $10 billion—plus the well-known first-day IPO pop—it wouldn’t be surprising to see their valuation soar to 20x or more. Of course, that’s a whole other discussion.
https://www.saas-capital.com/blog-posts/private-saas-company-valuations-multiples/
2023 Full Year:$443.5M →2024 Full Year:$581.8M (31.2% growth).
2023 H1:$276.1M →2024 H1:$348.2M (26.1% growth).
Professional Services and Other Revenue:
2023 Full Year:$24.2M →2024 Full Year:$32.6M (34.6% growth).
2023 H1:$16.4M →2024 H1:$15.1M (7.9% decline).
2023 Full Year:$467.7M →2024 Full Year:$614.3M (31.3% growth).
2023 H1:$292.5M →2024 H1:$363.3M (24.2% growth).
Revenue Per Employee(basically flat)
Employee Growth:The workforce grew from 840 employees in 2020 to 2,870 by mid-2024
https://www.sec.gov/Archives/edgar/data/1638826/000119312524260611/d577298ds1.htm
It’s a BIG industry out there so lets see how that stacks up against everyone else. You’re definitely going to have to zoom in because it’s a pretty crowded market…
https://cloudedjudgement.substack.com/p/servicetitan-benchmarking-the-s1
Cons of ServiceTitan’s IPO
“We have a history of losses and may not be able to achieve or sustain profitability in the future.
We have incurred net losses in each year since our inception, and we may not be able to achieve or maintain profitability in the future. We incurred net losses of $269.5 million and $195.1 million in fiscal 2023 and fiscal 2024, respectively. During the six months ended July 31, 2023 and 2024, we incurred net losses of $104.1 million and $91.7 million, respectively, and we had an accumulated deficit of $958.3 million as of July 31, 2024.”
Sadly this is pretty typical of startups over the last few years - while we moved away from growth at all costs, it still takes a lot of money to fuel it.
The company reported a $92 million net loss in the first half of 2024, primarily due to high sales and marketing ($116 million) and R&D expenses ($121 million).
High Sales and Marketing Costs:
Sales and marketing expenses account for 34% of revenue over the last 12 months, reflecting aggressive customer acquisition efforts.
Founders' Background:Co-founders Ara Mahdessian and Vahe Kuzoyan, both Armenian immigrants, developed ServiceTitan to modernize their fathers' contracting businesses.
Funding Milestones:The company has raised more than $1 billion, with a notable $200 million Series G round in June 2021, valuing it at $9.5 billion.
😂 MEME of The Week 😂
Trace Cohen@Trace_Cohen
Watching Ai startups avoid incoming VCs trying to throw money at them
1 ReplyAlways have an ask!
What’s your favorite pre-IPO startup?
Would you buy this stock at IPO / current price?
Live in NYC and love burgers?popchew.com
FIND ME: 𝕏@Trace_Cohen/inLinkedIn
Big Desk Energy
startup insights, stories, and vibes sent to your inbox every Tuesday
mail.bigdeskenergy.com/subscribe?_bhba=a912eba6-7a35-4c1b-a9cb-9721b5c72389
Start learning AI in 2025
Everyone talks about AI, but no one has the time to learn it. So, we found the easiest way to learn AI in as little time as possible:The Rundown AI.
It's a free AI newsletter that keeps you up-to-date on the latest AI news, and teaches you how to apply it in just 5 minutes a day.
Plus, complete the quiz after signing up and they’ll recommend the best AI tools, guides, and courses – tailored to your needs.
Share Trace Cohen's Vertical Ai Investor Newsletter
Or copy and paste this link to others:{{rp_refer_url_no_params}}
© 2026 Trace Cohen's Vertical Ai Investor Newsletter
1 Unicorn Ranch
Port Washington, New York 11050, United States