Klaviyo: Defending A Late-Stage Valuation


Klaviyo could be the rare startup to defend a late-stage 2021 valuation

As the IPO market slowly comes back to life, it’s becoming easier to understand just how far off the mark some startup valuations were back in 2021. While many companies have seen significant decreases in their valuations, Klaviyo, a Boston-based email marketing firm, appears to be an exception. With an IPO price range that puts it close to its previous valuation, Klaviyo could be on track to defend its late-stage 2021 valuation.

Key Takeaway

Klaviyo’s IPO pricing is in line with its previous valuation, showcasing its strength as a standout performer in its niche.

Instacart’s valuation drop highlights market volatility

One example of how startup valuations have evolved is Instacart. The delivery company, which had a peak valuation of $39 billion during the peak of startup investments, is now heading towards a $10 billion valuation as it prepares for its IPO. This significant drop in valuation underscores the market volatility and the need for startups to demonstrate their long-term growth potential.

Klaviyo’s steady growth positions it for IPO success

Unlike Instacart, Klaviyo has managed to maintain a valuation close to its previous post-money valuation of $9.5 billion. The company’s initial IPO price range of $25 to $27 per share places its fully diluted valuation at a strong $8 billion. If Klaviyo were to raise its price range before going public or price above its initial interval, it could potentially achieve an IPO on par with its last private valuation.

Investors are closely watching Klaviyo’s IPO as it could set an example for other late-stage startups looking to defend their valuations. During the golden days of venture capital, late-stage startups received significant funding, with the expectation of high public-market multiples. However, the subsequent repricing in the market has been harsh. Klaviyo’s ability to go public with a price range in line with its late-stage valuation is a remarkable feat.

Examining Klaviyo’s financials

Before diving into the Klaviyo IPO, it’s important to take a quick look at the company’s financials. While more detailed information is available, here are the key highlights:

  • Klaviyo is a Boston-based email marketing firm with a strong footing in its niche market.
  • Its previous post-money valuation was $9.5 billion, achieved in May 2021 when it raised $320 million in funding.
  • The initial IPO price range of $25 to $27 per share places Klaviyo’s fully diluted valuation at $8 billion, just shy of its previous valuation.

With the IPO market picking up momentum, Klaviyo’s positioning close to its previous valuation is garnering attention. The successful defense of a late-stage 2021 valuation would be a rare feat in today’s market. And if Klaviyo can indeed achieve this, it may pave the way for other startups to follow suit.

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