The Average SaaS IPO Takes 12 Years

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:

 

Published on September 16, 2021

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