Sammy is the Managing Director and Cofounder of Blossom Street Ventures. Connect on LinkedIn or email him directly at sammy@blossomstreetventures.comHow fast do you need to grow prior to exit? We looked at the last 36 SaaS IPO’s going back to MongoDB’s IPO in October 2017. The data is below.
The fastest growers were triple digit. The fastest growers had triple digit year over year growth. Snowflake led the way with 174% YOY growth followed by Livongo at 122%. Snowflake’s growth was especially impressive since it IPO’d with $265mm in revenue (Livongo had $68mm). Livongo’s revenue was the lowest of the group.
Slow growth is allowed. You can grow slowly and still go public. SurveyMonkey grew only 6%, McAfee grew only 9%, and ON24 grew 8%. Granted, the revenue of these businesses is sufficiently large, and their revenue multiples are quite low relative to peers.
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