PandoDaily has a great piece up on how hard it is to build an enterprise Software-as-a-Service (SaaS) business that includes key data from the last 12 SaaS IPOs. Of the 12 SaaS companies, most have been profiled here including Eloqua, Rally Software, ExactTarget, ServiceNow, Marin Software, Marketo, and Bazaarvoice.
Here are some key takeaways from the article on the last 12 SaaS IPOs:
- Company Age at IPO: Average of 9.5 years with median of 8 years
- Rounds of Financing: Average of 4.5
- Amount Raised: Average of $109 million with median of $75 million
- Revenue: Average of $71 million with median of $61 million
- Sales and Marketing Employees: Average of 35% of the workforce
- Employees: Average of 532 with median of 363
- Professional Services Revenue Percentage: Average of 20% with median of 17%
- Compounded Annual Growth Rate: Average of 59% with median of 55%
- Gross Margin: Average of 65% with a median of 66%
The moral of the story is that SaaS companies require substantial capital, scale, and growth to have a successful IPO.
What else? What are some other thoughts on the data from the last 12 SaaS IPOs?