What Lies Ahead: Trends in the Tech IPO Pipeline

The recently released Tech IPO Pipeline Report from CB Insights makes interesting reading for founders and entrepreneurs who are looking ahead. The report identifies 472 private venture-backed companies with valuations over $100 million, the “shadow IPO pipeline." These companies have collectively raised $40 billion, and a quick look at the list reveals some commonalities and trends among both the companies and their investors. 

Key takeaways from the report:

  1. The majority of these companies are selling to enterprises and the SMB market; only a minority are consumer-focused.
  2. NYC overtook Boston as the 2nd largest home for these companies (41 to 40), putting the two east coast states in a virtual dead heat.
  3. The average funding amount per company on the list is $84.7 million.
  4. PE investors are increasingly active in this space and are investors in 90 of the 472 companies.
  5. Almost 50% of the tech IPO pipeline is comprised of  internet companies followed by mobile & telecom companies, focused on services and infrastructure rather than applications.

This post on IPO was authored by John Egan.

 
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