Polychrome Developer Tools Indices Q3 Performance
This is a quick update on how the Polychrome Developer Tools Indices performed in Q3. We will continue to share lessons about SaaS operations and financial metrics as we go, but this post cuts straight to the numbers.
Polychrome Developer Tools Public 20
This list is the most valuable 20 developer tools companies, by market cap, which initially listed their stock publicly within the last 10 years - (as of Jan 1, 2021). The update we will track here is market cap, and compare the performance vs. other indices over the quarter.
The Polychrome Developer Tools Public 20 had a strong Q3, up 27.1% YTD and 11.5% in just Q3. I will repeat just as I did in Q2 that these are great returns over 9-months, but we think about these companies as building value over the long term, so stick around!
In Q3 the companies in the index had mixed results. A few companies made big gains, including the index’s largest holding Atlassian up 53.1%, Datadog up 37.4%, and Asana up 89.2%. It also had some companies that performed poorly, including Appian, Fastly, and Agora, each shedding over 30%. It will be interesting to see how this plays out at the beginning of next year as we add new companies and rebalance based on current market caps. For now, check out the results by company below.
Note: Salesforce completed its acquisition of Slack on July 21, 2021. For the remainder of 2021 we will use the acquisition price of $27.7B as the market cap for WORK.
Polychrome Developer Tools Private 30
This list is the 30 most funded developer tools companies, by dollars raised, which remain private - (as of Jan 1, 2021). This updates total funding, valuation range, and shares a few items to note.
Two more companies went public in Q3, Amplitude and Kaltura. They join Digital Ocean as the three companies from our list that are now publicly traded. Amplitude ended the quarter with a market cap of $5.9B and Kaltura at $1.3B. Congratulations to both companies!
Private company valuations are refreshed less often as compared to public stocks, but we have still seen some pretty impressive fundraising YTD in 2021. 17 companies reported a fundraise, and they have raised nearly $4B in total. Note - this excludes our now public companies (DOCN, AMPL, KLTR).
I hope you all are enjoying following the indices! Please comment on the next operating or financial topic you would like to dive into.