Alex Clayton

Anthropic, one of the most innovative companies in the world, is using Qualtrics, which was founded in 2002, as its survey tool for Cowork users. Anthropic's core business is building the world's leading models, not survey tools. While they could do it, why spend the time and resources? Hard to imagine a world where companies in-house a significant part of 3rd-party apps, simply because they want to focus on what their business does best.

Couldn't agree more. Everyone deserves to be safe.

@andrew__reed @sparkcapital @YasminRazavi @willreed 🔥

Impressive performance. Nothing fancy, just great investing. @sparkcapital @YasminRazavi @willreed

@grinich Let's go MG! 💯

Meritech is excited to work with @grinich on enabling AI proliferation in the enterprise.

We updated the valuation multiples across all publicly traded software companies in our index. 93% of public SaaS co's trade below 10x NTM (next-twelve-months) revenue.

@tankots @WisprFlow @tankots please ping me for the next one…thank you.

We offered 5 people a Porsche 911 GT3 RS if they could get @WisprFlow to make a mistake It's the fastest and most accurate AI voice dictation app that's 3x more accurate than ChatGPT, Claude, or Siri. Today, we’re finally launching on Android. Download now: play.google.com/store/apps/det… As a part of the launch, we’re giving away 6 months of Wispr Flow Pro for free. Like, retweet and comment ‘Wispr Flow’ to get it. Enjoy. — Written with Wispr Flow

@glangley 🙏

The San Francisco city government hasn’t gotten enough credit for the improvements in public safety last year — including a 125% clearance rate by the Homicide Unit. Incredible results in any context, but also interesting to note that this was achieved despite ongoing labor shortages in law enforcement. I remember seeing something at the end of last year suggesting SFPD was short around 500 officers.

@ericvishria And dilution and GAAP metrics! :)

Observation: When stocks are ripping upwards, investors talk about future TAM and potential market share. When stocks are crashing down, investors talk about company-specific financials and multiples.

The vast majority of companies need to grow faster than 15% YoY. The pillars of running a technology business—dilution, GAAP unprofitability, etc.—endure through both ups and downs, but these questions only tend to come up when growth isn't there...same thing in 2022. Growth will solve these problems.

@afc Sure, but 30% growth is a pipe dream for 90% of SaaS businesses today, there isn’t fresh white space (except in AI pockets), it’s a knife fight and mature industry. Why not transition to a real compounding business that rewards shareholders?

Public SaaS is experiencing one of its worst drawdowns amid a rapidly shifting and uncertain landscape for incumbent software vendors. Revenue growth has been slow for years, and the public markets are signaling that time is up to deliver on AI revenue growth. We share some thoughts below on the harsh reality facing public SaaS: grow faster or vanish. Link below: meritech.substack.com/p/times-up-for…

@Curiousjorge65 That would not work since growth is slower, yes. I still think growth solves most problems.

@afc Good post. One area not discussed, slow growth isn’t Inherently a problem, esp given the GM of SaaS. The problem is a slow growth biz that act as ATMs to insiders. They need to b shareholder friendly, GAAP prof businesses. Imagine if Pepsi had neg GAAP profits because of SBC?

The current state of public software valuation multiples is bleak. 89% of the 100+ companies we track trade at less than 10x NTM (next-twelve-months) revenue. Only 3 companies trade at 20x+ NTM revenue. This is a ~$3T public asset class. The vast majority of these companies aren't growing revenue quickly, and haven't since 2021 (year-over-year revenue growth has been flat to down for 8+ quarters). The median implied ARR growth rate is only 15% YoY across all public software. For context, Anthropic reportedly grew from $1B --> almost $10B last year. Only a few are growing implied ARR by >30% YoY, and those are the ones trading above 20x and have seen almost a 70% share price gain in the past 12 months. So while AI might be replacing some budgets, it was not the root cause. AI is also gaining traction in greenfield use cases. The reality is that very few of these companies have built AI products that customers are willing to pay for, let alone pay a premium for. If / when they do, they should see their revenue growth and valuation multiples increase. But if they don't, revenue growth, valuations, and value creation will remain extremely muted, and they will fade away. It is wartime for these incumbent SaaS vendors to innovate w/ AI.

While 2025 set a record for tech M&A over the past decade, last year saw only 21 tech IPOs, compared with 23 in 2019 and almost 90 in 2021. And 2026 could bring the largest IPO ever and a robust M&A environment. We did a review of the 2025 liquidity environment below: meritech.substack.com/p/2025-technol…

@DJ_CURFEW 💯 Incredible work

Today we’re launching the first and only human-like AI agents in the world. Super Agents™ are the first agents with human‑level skills – they DM you, take @ mentions, send emails, manage docs, tasks, and more. Not just tools or API calls, but real skills fine‑tuned for how teams actually work. The first agents with 100% context – fully native in @clickup and fully synced from other apps. Super Agents see your work the same way that humans do: tasks, docs, schedules, and conversations all in one place. The first agents that learn from human interactions automatically, without any setup or configuration – when you give feedback, they listen and improve how they work. The first agents with human‑level memory for custom agents – historical memory for every interaction, short-term working memory, and even long‑term memory stored in docs you can literally open, inspect, and edit. The first agents that are literally the same as users – our agentic user model is the same as our user data model. This gives you permissions and capabilities that you and your systems are already familiar with. The first infinite agent catalog – where anyone can create and customize agents in minutes, for literally any type of work imaginable. It's the most intuitive way to build agents on the planet. 95% of companies are failing in AI adoption. The reality is that AI isn't meant to be adopted, it's meant to be adapted – to you. Super Agents are automatically personalized to you and your company using proprietary state-of-the-art agent architecture, orchestration, and tooling. Today is the largest step forward we've ever made towards our mission of making people more productive. Maximize human productivity, with ClickUp Super Agents. Available NOW. For everyone.

@MeritechCapital is fortunate to be in business with @glangley and @Flock_Safety. Public safety is a right for all Americans.

@jakeserval Congrats Jake and team!!!

IT powers the workplace, and they’re hurting. Their tools are abysmal. Their workloads are unsustainable. They’re stuck in a vicious cycle of break/fix. But IT doesn’t just want to fix things. They want to BUILD things. They want to BUILD automations for: ☑️ help desk requests. ☑️ onboarding and offboarding ☑️ software access requests and reviews ☑️ asset management ❌ They DON’T want AI slopbots. ❌ They DON’T want tradeoffs between efficiency and security. ❌ They DON’T want legacy software that belongs in a museum. At Serval, we built the AI platform IT teams deserve: an all-in-one suite of AI-powered tools to automate help desk requests, build workflows, transform ticketing, and manage software access and assets. Serval is more than the next generation ITSM. It’s a reimagining of how IT operates. It’s rocket fuel for IT teams. It’s a glimpse into a future where IT BUILDS - not just for themselves, but for the entire organization. We heard from one customer “I would give up a kidney to keep Serval in our org.” The good news is, we won’t ask you to 🙂 But that’s how big this pain is and how much value Serval delivers. Today, Serval takes a huge leap forward, announcing our $75M Series B led by @sequoia, taking our valuation to $1 billion just 20 months after founding. This is still the beginning, and there is so much to build. But today I’m so proud of our team and all we’ve accomplished for our customers. Thank you to the servals that have worked so hard to make this possible, especially my cofounder Alex McLeod and our COO/my wife Tatiana Birgisson. Thank you to our customers who have believed in our vision from the very beginning. Thank you to our new investors, including Sequoia, Meritech, Evantic, Tenacity Capital, Sound Ventures, Radical VC, and Frank Slootman, alongside returning investors Redpoint, First Round, and General Catalyst. And most of all, thank you to all the IT teams that enable our most meaningful work. We’re working to repay the favor. ⬇️ See thread below for feature by Reuters, and our blog post on the raise!

We at @MeritechCapital are excited to be in business with @getserval. For too long, IT teams have been held back by static, brittle ITSM solutions that prevent them—and their employees—from performing at their best. AI-driven automation was always the promise, but no one delivered....until Serval. The company has grown revenue by 500% since closing its Series A only a few months ago and is used by some of the most forward-thinking IT teams today, including Clay, Together, Verkada, and many others. The company is also led by an exceptional team and CEO, @jakeserval. We're excited to be a small part of the future of ITSM with the Serval team. serval.com/updates/serval…

@joshk The biggest POV any manager can take in today's market is the size of terminal value outcomes. A decade ago there was <10 public software companies worth $10B, today there is almost 70. In 10 years, will it be 150, 300, etc? And how many $50, $100B co's, etc.

A large part of the bet that both VC's and LP's are making is that the size of the pool is getting bigger -- and exit values will continue to increase.  Here's some data to support the bull-case...

We at @meritechcapital are excited to share our 2025 markets update. Each year, we deliver a markets update presentation to our limited partners at our annual meeting and we've made it public this year.