It takes $ 84 million to take a company to IPO [graph]

10 Dec, 2012

If you ever wondered how much it costs to get a company to the point where it can start thinking about an IPO, this graph from CB Insights can shed some light: according to its research it would cost between $ 70 and 100 million for a tech company. That’s the amount it took to get 472 US based tech companies to a valuation of more than $ 100 million, and officially in the ‘IPO pipeline’.

The median amount of money invested in these firms is $ 75,8 million, with the average at $ 84,7:

funding tech IPO

The research company indexed some 472 US based tech companies that were VC or private equity funded with valuations currently (rumored at) $ 100 million or more. The research shows that B2B is a clear winner when it comes to creating value (something we already saw in Europe with SAP too): 80 percent of the highest valued companies target either entreprise customers or SMB’s.

Some of the companies to watch are: Box, SurveyMonkey, Palantir and, says CBInsights.

CB Insight writes: “there is a lot of chatter today about the ascendancy of the enterprise and the deceleration of interest in consumer-focused companies, the reality is that B2B companies have been a place where investors have allocated money for some time.”

high valuation b2b

Accel Partners and Sequoia Capital are best at getting to young companies early in the game, CB Insights says, but “some of the largest companies in the tech IPO pipeline are funded by well-heeled private equity investors”.

If anyone knows of comparable research for Europe, please let us know.

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Photo: bfishadow, Flickr

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About the author

Raf Weverbergh

Editor of whiteboard. Raf Weverbergh was a magazine journalist whose work appeared in magazines like Rolling Stone, Playboy, Mail on Sunday, Publico and South China Morning Post. He is the co-founder of FINN, a corporate communications agency where he advises startups and multinationals on their PR and Mustr, the easiest media database for PR professionals. You can contact him on Twitter, Linkedin or Skype (rafweverbergh).

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