The Return of the 100X Club

It’s funny how history has a way of repeating itself. 

This week, we wrote that artificial intelligence-powered search engine Perplexity is raising more money at a $3 billion valuation in a deal led by Bessemer Venture Partners, a lofty price considering it is generating just over $20 million in annual recurring revenue. 

That news got me thinking about a zero-interest-rate-era group of startups we dubbed the 100X Club. Perplexity is in this club, given the 150 revenue multiple its expected valuation implies.

AI founders may regret raising at such high prices. The 2020 100X Club members have shown how challenging it can be to manage inflated valuations.