Tuesday, Dec 7, 2021

It takes 12 years for an average SaaS IPO

So how long does it take to really Go Big?We did our own SaaStr analysis a little while back and saw it took on average 10 years to get to a $1B+..

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So how long does it take to really Go Big?

  1. We did our own SaaStr analysis a little while back and saw it took on average 10 years to get to a $1B+ acquisition in SaaS.
  2. And an IPO?  Sapphire Ventures crunched the numbers.  And the answer is 12 years to IPO.



It’s a challenge to us all to push through the tough times we often see around years 4-5.  When there is too much going on, not enough resources, and almost all of us get a bit tired.  A challenge to sign on for a second 5 year journey, from Years 5-10 or so.  And it’s only by the end of that second journey that power laws really kick in.

Mailchimp is a vivid example.  It was worth “just” $2B 3 years ago.  Fast forward to 2021, it sold for $12B.   Go longer.  At least, go longer if you have high NRR and decent growth.   At least think about it.

The math on 10 years to $1B acquisition here:





 

The post The Average SaaS IPO Takes 12 Years appeared first on SaaStr.

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By: Jason Lemkin
Title: The Average SaaS IPO Takes 12 Years
Sourced From: www.saastr.com/the-average-saas-ipo-takes-12-years/
Published Date: Thu, 16 Sep 2021 14:40:39 +0000

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