Jason M. Lemkin’s Post

So How Long Does It Take To IPO These Days? There haven’t been many SaaS IPOs since 2021 … but they are slowly coming back. Klaviyo, Rubrik and Onestream are the first 3 SaaS IPOs in years. That’s not many. But it’s enough to look at some data. And with that … how long does it take to IPO in SaaS, on average — for those that do? The answer: 10.4 Years And the last 3 IPOs? The first since the boom times? 11.3 Years I suspect this will trend up. First, more SaaS companies are waiting to IPO, both because growth has slowed but also because many are looking to hit $500m ARR, not $200m, before they IPO. Second, growth overall has slowed in SaaS. So I suspect it will go up. But the best are still doing it in about 11 years, even now.

Some great SaaS insights from ICONIQ Growth. Efficient growth with profitability is the mantra of the day. You can never go wrong when you build a profitable business. Efficiency drives increased profitability.

What’s the operational playbook for SaaS companies waiting out the current slow IPO market? Want to learn how best to prepare a SaaS company for the opportunities and pitfalls of an IPO? In this episode of SaaS Conversations, hear Lauren Kelley, Eric Mersch, and Jonathan Neitzell discuss the organizational positioning, reporting, and systems required for a successful reception from investors. Presenting an authentic, data-validated story is key when you’re communicating to the public market. Benchmarking gives an organization the tools to accurately represent itself when engaging with external stakeholders. Listen now to learn more best practices: https://spoti.fi/3VhtlsU

ICONIQ Growth Analytics' study, "Decoding the SaaS IPO Landscape," examines 115 software IPOs from the past decade, revealing the impact of macroeconomic factors, changing investor preferences, and evolving metrics on current public offerings cc: Christine Edmonds, Addison Anders, Vivian Guo

Rather than viewing 2023 as an anomalous year, we are perhaps seeing a return to normal with SaaS companies being valued most similarly to the 2019 class of IPOs. Today, we believe High Growth and High Efficiency companies are valued most similarly to 2019, when YoY growth and Rule of 40 were the metrics most highly correlated to IPO success. However, Vertical SaaS companies are being valued most similarly to 2020, when NDR was the metric most highly correlated to current multiple. Explore more in our annual IPO study ➡ https://bit.ly/3UCidXm

Salesforce’s cumulative cash burn to IPO was $30M: 1999: $0 revenue/ burned $5m 2000: $5m revenue/ burned $33m 2001: $22m revenue/ burned $14m 2002: $48m revenue/ $3m free cash flow 2003: $86m revenue/ $19m free cash flow IPO 2004 Scaling SaaS companies can be cash efficient.

Discover how @Glassbox is entering a new chapter with Alicorn VC's $150 million acquisition, reshaping the SaaS analytics landscape. #TechAcquisition #SaaS #AlicornGalaxy #BusinessStrategy

What multiples are being paid for SaaS acquisitions right now? Who are the leading buyers in the SaaS space? How to maximise your valuation? How to prepare for an exit? Register for our masterclass on SaaS Exits in exactly 3 hours to find out the answers to these questions, linke below. Our guest today is Dirk Sahlmer, Head of Origination of one of the most active SaaS aggregators out there! saas.group did 5 acquisitions in 2023 alone. Find out what the plan for 2024 is!

Everything SaaS founders should know about the current dilution benchmarks - how much of your company do you sell at each stage? 𝗞𝗲𝘆 𝗟𝗲𝘀𝘀𝗼𝗻𝘀 1. SAFEs are great but they are not free - watch out for stacking SAFE rounds due to the anti-dilution effects of post-money SAFEs     2. 20% in Seed and Series A is still market!     3. Bridge rounds layer on additional dilution - and they are more common than ever, whether through priced equity or convertible instruments.     4. SaaS founders end up owning widely variable percentages of the company at IPO - there are no right answers here.

SaaS leaders: Want to maximize your GTM efficiency for a successful IPO? We’re hosting a workshop based on the NEW RESEARCH from WbD that offers critical insights for pre-IPO SaaS companies. Join us! Mastering GTM Efficiency: The Key to IPO Success in SaaS Tues Aug 27 10am PT Our Chairman Dave Boyce is leading the discussion and sharing what he found in preparing this research. A quick preview:  -- 41 out of 72 public SaaS companies face challenges post-IPO due to GTM inefficiencies -- SaaS growth rates have significantly shifted since 2022 -- Acquisition costs are impacting margins for many companies -- Introduction of the "GTM Efficiency Factor" that correlates with IPO success The solution: The Lean Revenue Factory - and how you can apply this to drive sustainable revenue growth. Proud to be part of a team delivering such valuable insights for the SaaS industry. Register with the link in the first comment. #SaaS #GTM #IPO #RevenueArchitecture