📈 The Shift in SaaS IPOs! Janelle Teng of Bessemer Venture Partners delves into why SaaS companies are staying private longer, highlighting the rising median age of companies at IPO. Discover the advantages and challenges this trend poses for startups, employees, and investors alike. 🔗 Read the full analysis here: https://lnkd.in/e4nVmcte #SaaS #IPO #VentureCapital
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🔥 Consumer company IPOs are larger than Enterprise company IPOs 🔥 "Of the consumer companies that went public, 18.8% did an IPO at a valuation of more than $10 billion, nearly double the 9.6% rate for enterprise companies. Notably, consumer companies went public slightly faster—a median 76 months from founding versus 78 months for enterprise companies—and at a median 51% higher valuation." As a pre-seed investor leading consumer rounds Baukunst, I LOVE to see this data rich, myth busting report making the rounds. -> Read more in this phenomenal report from consumer trailblazer Kirsten Green, Jason Bornstein & Luke Erickson of Forerunner
Let the Data Speak: Consumer Startups Are a Better Bet Than Enterprise Startups
forerunnerventures.com
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Managing Director & Partner at Silicon Road Ventures | Investing in the Future of Commerce Tech | Driving Innovation in Fintech and Payments, Supply Chain and Logistics, E-commerce and Data Analytics. #commercetech
Some believe that we've reached peak SaaS and that the slowdown has already begun. It's true that we have seen a significant drop in the liquidity of SaaS startups over the past two years compared to the boom years of 2020-2021. While venture capital has remained relatively stable, the M&A landscape has leveled off significantly, including acquisitions by the top ten software buyers. This again highlights the need for startups to focus on sustainable financials and profitability if they hope to survive in a less saturated liquidity environment. #SoftwareAsAService #SaaS #VentureCapital #MergersAndAcquisitions https://lnkd.in/g_SsiP8T
The Great SaaS Slowdown: Navigating The New Liquidity Landscape
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ServiceTitan Files S-1: IPOs Are Coming Back! Last valued at $9.5B in 2021 or a 15.5x revenue which is a premium Let’s jump right in: exciting startups going public often command premium multiples, especially when compared to the average public SaaS companies trading at around 7x revenue. Assuming they aim to IPO at $10 billion—plus the well-known first-day IPO pop—it wouldn’t be surprising to see their valuation soar to 20x or more. Of course, that’s a whole other discussion.
ServiceTitan Files S-1: IPOs Are Coming Back!
startupstechvc.beehiiv.com
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Know your cap table and be sure to understand the dilution of taking capital. The best investors are customers. This is really true when you are building something requires a long journey on the flat part of the S curve.
SaaS founders — if and when you IPO, how much of the company will you own? Many folks throw around a couple key checkpoints. The first one is founding teams should try to hold on to 51% of equity after the Series A raise. That’s a fine goal (although many great companies don’t have that and still go on to wonderful outcomes). But how about at the end of the journey? Disclaimer: this is not Carta data and it's only 34 companies. But I still find the info collected by Jason M. Lemkin at SaaStr fascinating. Standout points: 1. The average ownership across the entire founding team at IPO was 22%. 2. The "first founder" (usually the CEO) had significantly more equity in companies with 2 co-founders (often about 2:1 ratio). Now - there are significant outliers here. The founding teams at Atlassian, Klaviyo, and ZoomInfo all IPO'd with majority ownership. Atlassian at 75.4% is an outrageous mark, kudos to them! If you remove the three high outliers, the key benchmarks look like: • 75th percentile ownership across the founders: 22.3% • 50th percentile: 17.1% • 25th percentile: 14.4% Does that feel like too much? Too little? The range is gigantic, from 75% down to 2%. And it’s definitely possible that founders across the board took some money off the table with secondary sales, etc over the lifetime of the company. Seems like every path to IPO is distinct enough that comparison is just an academic exercise. And hey, 2% of billions is still a lottery-level outcome. Here's to this damn IPO market opening back up soon, for everyone's sake 🙏 #founders #startups #dilution #fundraising #IPO -------------------- 𝘕𝘰𝘵𝘦 𝘰𝘯 𝘵𝘩𝘦 𝘥𝘢𝘵𝘢 Some of these companies may have more co-founders than listed who aren’t large enough shareholders to show up in the S-1 cap table. For purposes of thinking about equity ratios, the focus was on identifying folks with >= 5% ownership or who were named officers or directors. Stock option grants may not be fully included in these numbers which would push ownership numbers a little higher. Data from Jason Lemkin & SaaStr | Chart by Peter Walker
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The IPO market is showing signs of life after 2023's slowdown. Despite zero growth in IPO numbers for Q1 2023 and Q1 2024, funding raised in Q1 2024 more than tripled. Startups eyeing IPOs: Be ready, stay cautious and build trust early. Craft a strong narrative, manage risks and engage your audience. Laying the groundwork now paves the way for success when the market turns. #IPO #startupfunding #IPOmarket
How to navigate the road to IPO
fastcompany.com
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SaaS founders — if and when you IPO, how much of the company will you own? Many folks throw around a couple key checkpoints. The first one is founding teams should try to hold on to 51% of equity after the Series A raise. That’s a fine goal (although many great companies don’t have that and still go on to wonderful outcomes). But how about at the end of the journey? Disclaimer: this is not Carta data and it's only 34 companies. But I still find the info collected by Jason M. Lemkin at SaaStr fascinating. Standout points: 1. The average ownership across the entire founding team at IPO was 22%. 2. The "first founder" (usually the CEO) had significantly more equity in companies with 2 co-founders (often about 2:1 ratio). Now - there are significant outliers here. The founding teams at Atlassian, Klaviyo, and ZoomInfo all IPO'd with majority ownership. Atlassian at 75.4% is an outrageous mark, kudos to them! If you remove the three high outliers, the key benchmarks look like: • 75th percentile ownership across the founders: 22.3% • 50th percentile: 17.1% • 25th percentile: 14.4% Does that feel like too much? Too little? The range is gigantic, from 75% down to 2%. And it’s definitely possible that founders across the board took some money off the table with secondary sales, etc over the lifetime of the company. Seems like every path to IPO is distinct enough that comparison is just an academic exercise. And hey, 2% of billions is still a lottery-level outcome. Here's to this damn IPO market opening back up soon, for everyone's sake 🙏 #founders #startups #dilution #fundraising #IPO -------------------- 𝘕𝘰𝘵𝘦 𝘰𝘯 𝘵𝘩𝘦 𝘥𝘢𝘵𝘢 Some of these companies may have more co-founders than listed who aren’t large enough shareholders to show up in the S-1 cap table. For purposes of thinking about equity ratios, the focus was on identifying folks with >= 5% ownership or who were named officers or directors. Stock option grants may not be fully included in these numbers which would push ownership numbers a little higher. Data from Jason Lemkin & SaaStr | Chart by Peter Walker
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Founder @ Black Swans | Silicon Valley's Top Strategist | Leader of Open Source Software Movement
Well knock me over with a feather! A lot of Black Swans on this list - above the average % at that! It would be interesting to look at how the direct listings opportunity factored in. A few of these we launched and scaled so we did take the risk of a direct that first time without a net but then could do a few with the advantage of the US JOBS Act (protected IPO filing) and going out with a 'reference price.' Quite a few of these were Open Source valuations / dev tools plays first then scaled out from there. Founders in this space usually can command more %. Hazy out there on ownership with how filings work, shift to SPVs and SAFEs getting so much utilization for a long spell. If you haven't, sign up for Carta's Data Minute where Peter Walker slices and dices the numbers: https://lnkd.in/gGRM4c8B
SaaS founders — if and when you IPO, how much of the company will you own? Disclaimer up top, this is not Carta data and it's only 34 companies. But I still find the data collected by Jason M. Lemkin at SaaStr fascinating. A couple major points stand out: 1. The average ownership across the entire founding team at IPO was 22%. 2. The "first founder" (usually the CEO) had significantly more equity in companies with 2 co-founders (often about 2:1 ratio). Now - there are significant outliers here. The founding teams at Atlassian, Klaviyo, and ZoomInfo all IPO'd with majority ownership. Atlassian at 75.4% is an outrageous mark, kudos to them! If you remove the three high outliers, the key benchmarks look like: • 75th percentile ownership across the founders: 22.3% • 50th percentile: 17.1% • 25th percentile: 14.4% Does that feel like too much? Too little? The range is gigantic, from 75% down to 2%. Seems like every path to IPO is distinct enough that comparison is just an academic exercise. And hey, 2% of billions is still a lottery-level outcome. This concept of dilution through fundraising rounds is slippery - at first glance, it's simple. But add in the SAFE conversions, the option pools, the priced round extensions, and the exact amount everyone owns becomes hazy. So on Monday morning, I'm going to do a LinkedIn Live presentation on dilution at the early stages, including pre-seed, seed, Series A, and Series B! Market benchmarks + a little live modeling in Carta Launch to give a the numbers some real impact. Give me a shout in the comments for a direct link to the event once we open registration. You'll have the ability to ask questions in the comments as well. Here's to this damn IPO market opening back up soon, for everyone's sake 🙏 #founders #startups #dilution #fundraising #IPO -------------------- 𝘕𝘰𝘵𝘦 𝘰𝘯 𝘵𝘩𝘦 𝘥𝘢𝘵𝘢 Some of these companies may have more co-founders than listed who aren’t large enough shareholders to show up in the S-1 cap table. For purposes of thinking about equity ratios, the focus was on identifying folks with >= 5% ownership or who were named officers or directors. Stock option grants may not be fully included in these numbers which would push ownership numbers a little higher. Data from Jason Lemkin & SaaStr | Chart by Peter Walker
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Co-Founder, Rainmaker-in-Chief @Indochina Consulting | Serial Entrepreneur and Impact Angel | Investing in people and technologies that will get us to net zero
You can't "bank" percentages, only the monetary value attached to the shares that those percentages represent. As I've often said to Founders there is no one right path from incorporation to exit, so outcomes will always vary. I'd love to see the binomial (bell shaped curve) distribution from a larger sample size. #IPO #exit #startups #founders #venturefunding #venturecapital #thefundraisingangel
SaaS founders — if and when you IPO, how much of the company will you own? Disclaimer up top, this is not Carta data and it's only 34 companies. But I still find the data collected by Jason M. Lemkin at SaaStr fascinating. A couple major points stand out: 1. The average ownership across the entire founding team at IPO was 22%. 2. The "first founder" (usually the CEO) had significantly more equity in companies with 2 co-founders (often about 2:1 ratio). Now - there are significant outliers here. The founding teams at Atlassian, Klaviyo, and ZoomInfo all IPO'd with majority ownership. Atlassian at 75.4% is an outrageous mark, kudos to them! If you remove the three high outliers, the key benchmarks look like: • 75th percentile ownership across the founders: 22.3% • 50th percentile: 17.1% • 25th percentile: 14.4% Does that feel like too much? Too little? The range is gigantic, from 75% down to 2%. Seems like every path to IPO is distinct enough that comparison is just an academic exercise. And hey, 2% of billions is still a lottery-level outcome. This concept of dilution through fundraising rounds is slippery - at first glance, it's simple. But add in the SAFE conversions, the option pools, the priced round extensions, and the exact amount everyone owns becomes hazy. So on Monday morning, I'm going to do a LinkedIn Live presentation on dilution at the early stages, including pre-seed, seed, Series A, and Series B! Market benchmarks + a little live modeling in Carta Launch to give a the numbers some real impact. Give me a shout in the comments for a direct link to the event once we open registration. You'll have the ability to ask questions in the comments as well. Here's to this damn IPO market opening back up soon, for everyone's sake 🙏 #founders #startups #dilution #fundraising #IPO -------------------- 𝘕𝘰𝘵𝘦 𝘰𝘯 𝘵𝘩𝘦 𝘥𝘢𝘵𝘢 Some of these companies may have more co-founders than listed who aren’t large enough shareholders to show up in the S-1 cap table. For purposes of thinking about equity ratios, the focus was on identifying folks with >= 5% ownership or who were named officers or directors. Stock option grants may not be fully included in these numbers which would push ownership numbers a little higher. Data from Jason Lemkin & SaaStr | Chart by Peter Walker
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Are you an active member in the startup ecosystem and want in-depth look at some SaaS benchmarks? 📊 Thanks to Blossom Street Ventures, we have created a report that features relevant metrics aggregated from publicly traded U.S. SaaS companies that IPO'd after October 2017 🚀 Take a look here >>> https://lnkd.in/geXKHpqK
SaaS Benchmarks Report | Lighter Capital
lightercapital.com
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10,000+ Social Media / StartLouis: Principal, Founder V5.0, Organizer / Worldwide Communication Services: Founder, Principal / Ed Schneider: Accredited Investor (LinkedIn 5,000+ / X - Twitter: 3,000+ / Members 1,500+).
Fyi: Funding / IPO / Equity of “Founders”: For the St. Louis Region and Beyond, #EcoNetworkSystem for #Founders, #StartUps, #Entrepreneurs, #Innovators, #SMB’s and Others. All of content: “SaaS founders — if and when you IPO, how much of the company will you own? Many folks throw around a couple key checkpoints. The first one is founding teams should try to hold on to 51% of equity after the Series A raise. That’s a fine goal (although many great companies don’t have that and still go on to wonderful outcomes). But how about at the end of the journey? Disclaimer: this is not Carta data and it's only 34 companies. But I still find the info collected by Jason M. Lemkin at SaaStr fascinating. Standout points: 1. The average ownership across the entire founding team at IPO was 22%. 2. The "first founder" (usually the CEO) had significantly more equity in companies with 2 co-founders (often about 2:1 ratio). Now - there are significant outliers here. The founding teams at Atlassian, Klaviyo, and ZoomInfo all IPO'd with majority ownership. Atlassian at 75.4% is an outrageous mark, kudos to them! If you remove the three high outliers, the key benchmarks look like: • 75th percentile ownership across the founders: 22.3% • 50th percentile: 17.1% • 25th percentile: 14.4% Does that feel like too much? Too little? The range is gigantic, from 75% down to 2%. And it’s definitely possible that founders across the board took some money off the table with secondary sales, etc over the lifetime of the company. Seems like every path to IPO is distinct enough that comparison is just an academic exercise. And hey, 2% of billions is still a lottery-level outcome. Here's to this damn IPO market opening back up soon, for everyone's sake 🙏 #founders #startups #dilution #fundraising #IPO -------------------- 𝘕𝘰𝘵𝘦 𝘰𝘯 𝘵𝘩𝘦 𝘥𝘢𝘵𝘢 Some of these companies may have more co-founders than listed who aren’t large enough shareholders to show up in the S-1 cap table. For purposes of thinking about equity ratios, the focus was on identifying folks with >= 5% ownership or who were named officers or directors. Stock option grants may not be fully included in these numbers which would push ownership numbers a little higher. Data from Jason Lemkin & SaaStr | Chart by Peter Walker _____ #StartLouis Where “StartUps” Start. Ed Schneider ——- For the St. Louis Region and Beyond, #EcoNetworkSystem for #Founders, #StartUps, #Entrepreneurs, #Innovators, #SMB’s and Others. _____ (O:081024-0219p-(147) -(R:0319p). _____
SaaS founders — if and when you IPO, how much of the company will you own? Many folks throw around a couple key checkpoints. The first one is founding teams should try to hold on to 51% of equity after the Series A raise. That’s a fine goal (although many great companies don’t have that and still go on to wonderful outcomes). But how about at the end of the journey? Disclaimer: this is not Carta data and it's only 34 companies. But I still find the info collected by Jason M. Lemkin at SaaStr fascinating. Standout points: 1. The average ownership across the entire founding team at IPO was 22%. 2. The "first founder" (usually the CEO) had significantly more equity in companies with 2 co-founders (often about 2:1 ratio). Now - there are significant outliers here. The founding teams at Atlassian, Klaviyo, and ZoomInfo all IPO'd with majority ownership. Atlassian at 75.4% is an outrageous mark, kudos to them! If you remove the three high outliers, the key benchmarks look like: • 75th percentile ownership across the founders: 22.3% • 50th percentile: 17.1% • 25th percentile: 14.4% Does that feel like too much? Too little? The range is gigantic, from 75% down to 2%. And it’s definitely possible that founders across the board took some money off the table with secondary sales, etc over the lifetime of the company. Seems like every path to IPO is distinct enough that comparison is just an academic exercise. And hey, 2% of billions is still a lottery-level outcome. Here's to this damn IPO market opening back up soon, for everyone's sake 🙏 #founders #startups #dilution #fundraising #IPO -------------------- 𝘕𝘰𝘵𝘦 𝘰𝘯 𝘵𝘩𝘦 𝘥𝘢𝘵𝘢 Some of these companies may have more co-founders than listed who aren’t large enough shareholders to show up in the S-1 cap table. For purposes of thinking about equity ratios, the focus was on identifying folks with >= 5% ownership or who were named officers or directors. Stock option grants may not be fully included in these numbers which would push ownership numbers a little higher. Data from Jason Lemkin & SaaStr | Chart by Peter Walker
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