MuleSoft — the next highly valued private tech company to go public — will really test whether tech valuations can survive public scrutiny, Kathleen Smith, Renaissance Capital chairman, said Monday on CNBC's "Squawk Alley."
The fast-growing, money-losing enterprise software company's pre-IPO valuation was $1.5 billion and it is trying to go public at a proposed $1.8 billion valuation, Smith noted. MuleSoft lost $50 million on $188 million in revenue in 2016, but its losses shrank from $65 million in 2015, and its revenue grew 70 percent from the previous year, according to its IPO filing. So investors will have to bet that trend will continue.
"Investors are going to take a good look at this, and we'll see if that continues the strong trend," she said.