What does it take as a Tech company to IPO in the US?

Are you an emerging / established Enterprise Software company planning to go public in the US?


Here is what you need to know if you want to be in the coveted $1Bn+ market cap club. [Data backed]

There have been 45 companies Enterprise Software companies since 2016 that went public in the US.


Both products & services businesses can be valuable.


49% were services styled while 40% were product/ developer based.


Customers are increasingly moving to cloud-first.


58% of companies were cloud-first in their DNA. Their average LTM revenue multiple was ~12x!


Application software & infrastructure were the most valuable vis-à-vis LTM revenue.


Average annual revenue was $180-250M at the time of application for listing.


Median capital raised was ~$250M.

Median post IPO valuation was ~$2Bn.


Median revenue multiples peaked in 2020.


On LTM revenue, they hit valuations of ~22x of LTM revenue.

I think over time, the most important thing is how capital efficient the business model is because providing sustainable returns to investors is equally important - every quarter, every year!

And, this is really where the best excel - in the lovely balance between short-term battles and long-term wars.