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23 million SWEs today, presumably they argue that number will climb both due to growth of software in general and their tool lowering the bar of writing code.
by llamaimperative 2y ago
23 million SWEs today, presumably they argue that number will climb both due to growth of software in general and their tool lowering the bar of writing code.
23 million * $40 * 12 => $11B per year in rev * ~10-12x revenue enterprise value => company could grow to be worth $100B+
So assuming you feel like you're getting a fair price for it today, then there's plenty of room for your money to grow.
- hn_throwaway_99 2y agoThese are fantasy numbers. > 23 million * $40 * 12 So you're assuming every single developer will pay $40 a month for Cursor??? And I say this as someone who does pay $20 a month for Cursor. I also think it's quite the stretch to say the number of SWEs will grow meaningfully due to AI, especially when it seems like half the time you hear a pitch about how it will make software developers obsolete. To be clear, I can easily understand how $60 million is a good investment, but I chuckle at the $100B+ valuation.
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- llamaimperative 2y agoYeah of course they’re fantasy numbers. It’s called a TAM and it’s how VCs get comfortable with putting $60 million into a company like Cursor. I made no claim as to what the company is actually worth. And right, some people claim AI will reduce number of SWEs. If you’re Cursor, you’re probably arguing the opposite.
- all2 2y agoLet's say they capture 2 percent of the market. 23mil x 40 x 12 = 220.8 mil I don't know how many developers want to give up their bespoke IDEs. Moving away from JetBrains products (even given all there warts) would be a hard sell for me. I also don't know how many developers even pay for an IDE.
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