Inovia Capital’s Post

What happened to US SaaS companies over the past 24 months? Obviously this is a question that has several answers, some of which take into account global instability, interest rate changes, and profound technological shifts. But we’ll stick to valuations and fundraising. You could make the case that in the chart above, the most salient factor is the round count on the far right. Fewer SaaS companies are raising primary rounds, full stop.  But I was struck by the way the distribution of valuation for both years was essentially frozen at early-stage and substantially changed in late-stage.  Effectively there is a floor under priced seed round valuations, where some combination of deal competitiveness, fund economics, and distance from IPO together created a stubborn median of $13M. The major story at later stages is a retreat from the highest part of the scale, where the share of rounds valued at over half a billion dollars was sharply reduced. Investors just didn’t touch the top part of the range with the same regularity. Feeling optimistic that the seed SaaS rounds in particular are in for a better 2024. Now if we can just get an IPO or two in the works! #startups #founders #saas #valuation #thefundraisingangel

Will IPOs make a come back in 2024? 2024 is shaping up to be a year of exits for private equity and venture capital clients in Europe. Sifted has compiled a list of European scaleups that are gearing up for IPOs this year. Check out the full list here: https://bit.ly/3S3yPED. At Camino, we have a strong talent pool of seasoned c-suite executives and advisorts who have successfully taken businesses through exits within the tech space. If you're taking your portfolio through this journey, we'd be happy to support you by introducing you to highly skilled executives. #IPO #privateequity #venturecapital #exitstrategy

Pre-IPO vs. Post-IPO: Picking Your Startup Winner The startup world is sizzling, and investors are hungry for a piece of the action. But should you chase pre-IPO opportunities or grab shares post-IPO? Let's break down the pros and cons of each: **Pre-IPO: High Risk, High Reward ** Early Access: Be among the first investors in a potential game-changer. Discount Potential: Pre-IPO shares might be cheaper than the public offering price. Limited Availability: Owning a pre-IPO gem can be exciting, but access is restricted. But be aware: Illiquidity Trap: Selling pre-IPO shares can be tough. You're likely in for the long haul (years) until an IPO or acquisition. Startup Rollercoaster: Many young companies don't make it. Your investment could become worthless. Information Blackout: Pre-IPO companies often share less financial data, making due diligence tricky. **Post-IPO: Transparency & Flexibility ** Liquidity Lifeline: Publicly traded shares offer the freedom to buy or sell on the stock exchange. Open Book Management: Public companies disclose more financial information, allowing for better analysis. Proven Track Record: By IPO time, these companies have a business model that's working, reducing some risk. However, remember: IPO Frenzy: The initial offering can be volatile, and the stock price might not reflect true value. Missed Discount: You won't get the potentially lower pre-IPO price. **Choosing Your Startup Champion ** Pre-IPO is for investors comfortable with high risk, long bets, and the potential for massive returns. Post-IPO caters to those seeking liquidity, transparency, and a less volatile entry point. The best choice depends on your risk tolerance, investment goals, and research skills. Consider connecting with a financial advisor to find the option that aligns with your overall strategy. #startupinvesting #preipo #ipo #venturecapital #stockmarket

💰🔍 The price tags of the top 15 tech companies that went public recently: then vs. now! Most startups have either held steady or boosted their valuations as public companies. 🚀✨ This could be a solid sign for those eyeing an IPO but hitting the brakes due to market jitters! #TechTrends #IPOInsights

Readiness can be Everything: How Atlanta Startups Can Strategically Prepare for an Evolving IPO Market https://lnkd.in/e__xF7EZ

Readiness can be Everything: How Atlanta Startups Can Strategically Prepare for an Evolving IPO Market https://lnkd.in/e__xF7EZ

If I could count the number of times I heard a VC say "I love what you're doing but we just don't invest in Consumer startups." Thanks for the reminder on why that's a huge miss Forerunner! "We live in a consumer-driven economy—consumer spending accounts for two-thirds of the U.S. GDP. Yet Carta recently reported that just 7% of seed capital raised on the site last year went to consumer companies, the smallest share since 2018. And yet... Consumer companies offer better growth rates and profit margins at IPO. Consumer company IPOs are larger. Consumer companies fetch comparable revenue multiples at IPO." https://lnkd.in/gARb-Q6W

Despite current perceptions that the IPO window for tech startups is closed, there is optimism that the market could see a resurgence. While Arm is the only company trading above its debut, the recent success of the public markets suggests a potential comeback for IPOs. Don Butler shared with Madeline Renbarger that the overall market performance has a significant correlation with the IPO market, making the current buoyant market conditions promising. Read more on Newcomer

Is 2024 the year IPOs finally make a comeback? There is an insightful article by Madeline Renbarger in Newcomer on all the factors that will determine the answer, including insights from Don Butler at Thomvest , Jai Das at Sapphire Ventures, Navin Chaddha at Mayfield Fund, and Sean Jacobsohn at Norwest Venture Partners. #ipos #iponews #ipo #iporeadiness #thomvest

You can't "bank" percentages, only the monetary value attached to the shares that those percentages represent. As I've often said to Founders there is no one right path from incorporation to exit, so outcomes will always vary. I'd love to see the binomial (bell shaped curve) distribution from a larger sample size. #IPO #exit #startups #founders #venturefunding #venturecapital #thefundraisingangel