More recently, Snowflake and Unity reported spending 40% and 47% of revenue on R&D, and the past 17 IPO’s going back to PagerDuty had average R&D spend equivalent to 29% of revenue.
Marketplaces. On median, marketplaces spent 19% of revenue on R&D prior to IPO and 22% the year before that. Note the Real Real was at a whopping 51%.
E-commerce. Interestingly, most of the companies in this sector don’t break out R&D or tech spend.
sammy@blossomstreetventures.com
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