Founding rounds needed for an IPO
How many rounds has it taken the latest crop of tech companies to go public? VC Firm Blossom Capital analysed the data from the last 73 SaaS IPOs going back to October 2017 (MongoDB).
Software. On median, publicly traded software companies raised through their Series E before going public.
Note that Palantir went all the way through their Series K. Other companies like Datto did zero rounds because they were private equity owned. Net investment of software companies at the time of IPO was $301mm (equity + debt — cash). The average was $648mm. At the time of IPO, software business had generated on median $0.60 of revenue for every dollar of investment and $0.92 on average.
For consumer focus companies, the sample is smaller with just 12 IPO. The range is wide as Doximity raised only through the Series C while Duolingo went to a Series H. Others like Bumble had no rounds because they were largely owned by private equity at the time of going public. Net investment was $230mm on median and $349mm on average. These companies generated on median $1.05 of revenue per dollar of net investment, and $1.03 on average.