Jill Ratkevic’s Post

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

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

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.

🚀 The Canadian tech IPO market is evolving, and the approach to going public is shifting along with it. We're excited to share an article from BetaKit where our Principal, Mia Morisset, delves into what will shape the next wave of Canadian IPOs. “Before 2021, companies were seeing the IPO as the end game, and I think that has changed,” Mia explains. “People have realized that an IPO is a great milestone, but it’s not the only one, and startups have to think carefully about optionality and the path they want to pursue.” At Inovia, we’re committed to helping our portfolio companies navigate optionality, while ensuring they’re strategically positioned for long-term growth and success. Read the full article to explore Mia’s insights on how Canadian tech companies can prepare for the next wave of IPOs. 🔗 https://lnkd.in/gds9m6am #CanadianTech #IPO #Innovation #CompanyBuilders

📈 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

Pre-IPO vs. Post-IPO: Picking Your Startup Winner The startup world is sizzling, and investors are hungry for a piece of the action. But should you chase pre-IPO opportunities or grab shares post-IPO? Let's break down the pros and cons of each: **Pre-IPO: High Risk, High Reward ** Early Access: Be among the first investors in a potential game-changer. Discount Potential: Pre-IPO shares might be cheaper than the public offering price. Limited Availability: Owning a pre-IPO gem can be exciting, but access is restricted. But be aware: Illiquidity Trap: Selling pre-IPO shares can be tough. You're likely in for the long haul (years) until an IPO or acquisition. Startup Rollercoaster: Many young companies don't make it. Your investment could become worthless. Information Blackout: Pre-IPO companies often share less financial data, making due diligence tricky. **Post-IPO: Transparency & Flexibility ** Liquidity Lifeline: Publicly traded shares offer the freedom to buy or sell on the stock exchange. Open Book Management: Public companies disclose more financial information, allowing for better analysis. Proven Track Record: By IPO time, these companies have a business model that's working, reducing some risk. However, remember: IPO Frenzy: The initial offering can be volatile, and the stock price might not reflect true value. Missed Discount: You won't get the potentially lower pre-IPO price. **Choosing Your Startup Champion ** Pre-IPO is for investors comfortable with high risk, long bets, and the potential for massive returns. Post-IPO caters to those seeking liquidity, transparency, and a less volatile entry point. The best choice depends on your risk tolerance, investment goals, and research skills. Consider connecting with a financial advisor to find the option that aligns with your overall strategy. #startupinvesting #preipo #ipo #venturecapital #stockmarket

Sobering thought... only .4% of SaaS companies achieve $10M in ARR. That means 99.6% of SaaS companies fail to generate a positive exit for investors/employees. Scaling your sales and being stuck below $10M in ARR is often referred to as "The Valley of Death". Proud to say that True Sales Results (TSR) has worked with many SaaS startups that have gone on to achieve $10M in ARR and even $100M in ARR. Not surprisingly, they have all led to a positive exits for investors/employees. #saassales #saas #salesenablement #salesperformanceoptimization #truesalesresults #ipo #M&A

🚀 Top 20 Fastest IPOs of All Time 🚀 IPOs represent a pivotal liquidity event for founders and early-stage investors, allowing companies to access significant capital for growth while enabling investors to realize returns on their investments. In 2021, there were 1,035 IPOs, which increased to 1,333 in 2022, demonstrating a positive trend in market activity. However, the fluctuating landscape has led to a decline in 2023, highlighting the dynamic nature of the market. Here are the Top 20 Fastest IPOs: 1. VA Linux (Larry Augustin) – 9 months 2. Netscape (Marc Andreessen, Jim Clark) – 1 year 3. Napster (Shawn Fanning, Sean Parker) – 1.5 years 4. Yahoo! (Jerry Yang, David Filo) – 1.5 years 5. Qualcomm (Irwin Jacobs, Andrew Viterbi) – 2 years 6. Pets.com (Julie Wainwright) – 2 years 7. Amazon (Jeff Bezos) – 3 years 8. eBay (Pierre Omidyar) – 3 years 9. Box (Aaron Levie, Dylan Smith) – 4 years 10. Apple (Steve Jobs, Steve Wozniak, Ronald Wayne) – 4 years 11. Red Hat (Marc Ewing, Bob Young) – 5 years 12. Google (Larry Page, Sergey Brin) – 6 years 13. Lyft (Logan Green, John Zimmer) – 7 years 14. Twitter (Jack Dorsey, Biz Stone, etc.) – 7 years 15. Snowflake (Benoit Dageville, etc.) – 8 years 16. Facebook (Mark Zuckerberg, etc.) – 8 years 17. Zoom (Eric Yuan) – 8 years 18. LinkedIn (Reid Hoffman, etc.) – 8 years 19. Spotify (Daniel Ek) – 12 years 20. Rivian (Robert "RJ" Scaringe) – 12 years These companies have transformed industries and demonstrate the significant role of IPOs in enabling growth and rewarding early stakeholders. Do you know any company that should have been in the list? #IPO #Investing #Startups #LiquidityEvent #BusinessGrowth PS: We just created a Virtual Access Ticket Class for #StartupSouth9. Connect with Founders and Investors. Investors comment below for Free Investors Pass.