Are you a founder evaluating potential exit paths? The best time to sell your company was in 2021 but now might be a good time to sell at a fair valuation. Here’s why 👇 Tech companies have been the M&A protagonists for the past 2 decades. Acquirers like Google and Microsoft poured billions into aggressive M&A strategies, strengthening their market position and creating the tech value chain 👇 1. Capital was cheap due to ZIRP, so VCs poured money into early-stage companies 2. Some of these companies grew fast with cheap money, so they either got acquired or went public 3. Exits meant payday for founders, VCs, investment banks, legal firms and the broader tech sector 4. More capital was poured into the tech sector, and the cycle began again… ♻️ But the music stopped at the party when The Fed cut interest rates in 2022. Capital became expensive and scarce almost overnight: - Active buyers went conservative for the first time in decades - The IPO market dried up, making exits even less likely than they already were. Valuations + market conditions haven’t been the best for founders ever since. 𝗕𝘂𝘁 𝗧𝗵𝗲 𝗙𝗲𝗱 𝗵𝗮𝘀 𝗯𝗲𝗲𝗻 𝗰𝘂𝘁𝘁𝗶𝗻𝗴 𝗿𝗮𝘁𝗲𝘀 𝗳𝗼𝗿 𝘁𝗵𝗲 𝗽𝗮𝘀𝘁 𝗺𝗼𝗻𝘁𝗵𝘀 𝘁𝗵𝗶𝘀 𝘆𝗲𝗮𝗿. That’s why we’re seeing a slight uptick in M&A activity, particularly in tech. This might be the light at the end of the tunnel for founders looking at potential exit scenarios in the next few months. My takeaways: - Fundamentals are shifting. Tech is no longer the moat it was, as AI is disrupting competitive dynamics - Bigtech buyers might not be the protagonists in this new M&A era, so I’d expect to see a new generation of aggressive buyers 👀 - Nobody knows if and for how long rate cuts will continue, so I’d consider that to accelerate decision-making. Thoughts? 💬 #startups #acquisitions #mna #buyside #sellside #dealmakers Image credit: Visual Capitalist.
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Looking to exit at $1B? Big tech will likely be your ticket. Global M&A deal value was $3.2 trillion in 2023. And M&A activity increased by 130% YoY in Q1 of 2024. Some of the recent big tech acquisitions include: Microsoft’s $69B acquisition of Activision in 2023 Google’s $5.4B acquisition of Mandiant in 2022. Amazon’s $8.5B acquisition of MGM in 2022. Want to be a part of that list? Here’s how we got startups acquired and invested by Google, Microsoft, Canva, and more… 1. Redesign your business model for synergistic potential. 2. Position your startup or tech in the acquirer’s ecosystem. 3. Strategically build your business to attract their interest. Considering M&A in the near term… Reach out to me via email: herwig_springer@i5invest.com 𝐖𝐡𝐨 𝐢𝐬 i5invest: We are a corporate development firm with access to 150K+ top decision-makers in Strategy, Business Development, and M&A. We provide innovative tech founders with insights, expertise, and access to our network to take their companies to the next level. #founders #investors #venturecapital #privateequity #startups #i5invest Data sourced from Bain & Company.
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ServiceTitan's IPO yesterday was great for innovation and scale-ups (priced at the high-end and still ended yesterday up ~40%). For the past 2+ years, public market exits have been scarce, leaving many VCs and investors stranded without liquidity to fund the next generation of scale-ups (like Base64). And there is a list of 2025 IPO candidates ready to go (Stripe, Klarna, CoreWeave, SpaceX, etc.). Four reasons the ServiceTitan IPO is significant: 1️⃣ Reopening the IPO Window = Liquidity VCs and growth investors finally have a chance to realize returns. With this liquidity, they will reinvest into earlier-stage startups, powering the next wave of technological breakthroughs. 2️⃣ Investor Confidence Is Back Begins to restore investor trust in late-stage, growth tech. This momentum helps scale-ups as they approach key milestones like Series A and beyond. 3️⃣ Focus on Fundamentals Wins Strong fundamentals...real revenue, growth efficiency, and market fit are rewarded. Clear signals for scale-up CEOs to prioritize profitability alongside growth. 4️⃣ Reigniting the US Leadership & Innovation Flywheel Innovation depends on capital flow. When investors see liquidity opportunities, they deploy more capital into emerging tech. ServiceTitan’s success reaffirms the strength of the U.S. as a global leader in supporting tech companies that drive economic and societal progress. Congrats to the ServiceTitan team and the early investors that believed in them...Tiger Global Management, Battery Ventures, Bessemer Venture Partners, Arena Holdings, Sequoia Capital, Dragoneer Investment Group, ICONIQ Capital, Index Venture Partners. The IPO window is finally cracked open (and I suspect M&A will heat up in 2025 as well)...LFG! 🚀 #IPO #TechEcosystem #VentureCapital #Base64 #ServiceTitan
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“A journey of a thousand miles begins with a small step” - Lao Tzu 🏔 At Blume, over the last decade+, we have backed founders who are in it for the long haul and want to build generational companies. Founders with a long-term horizon are not only more resilient, they also have higher odds of generating outsized returns for the company, employees, and investors. And there’s nothing more long-term than building a business with the intention of going public. We’ve always believed, and we've said it out loud, that public listings are the starting point for building a company for decades to come. A company on the path to IPO signals: 💰 Strong business fundamentals and a clear path to profitability 💪 Founders looking to build tenaciously in full public view 🏛️ Strong governance and compliance frameworks 🎯 Scalable business model with significant market opportunity To help founders and operators surf the waves of the IPO momentum, we have compiled articles by our team: Vikram Gawande, Aria Pradhan, Dhagash Shah, Karthik B. Reddy, and Rohit Kaul, that will inspire and inform you to get IPO-ready. 🤔 Got IPO questions? We've got answers to questions like: • How big does my company need to be to go public? (Hint : Not very large, More companies with <1000Cr revenue are going IPO — 60%+ companies in FY24) • How long will it take me to file an IPO if I start today? • Do I need to be profitable before I decide to take my startup public? • What are the dos and don’ts of publicizing my upcoming IPO? And many more questions you might have on your path to IPO! We hope you find this collection useful as you take the next step in your thousand-mile journey. Read: https://lnkd.in/dnCPFBFB
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Yes, ESOP 'on demand liquidity' is the solution.
The startup landscape has changed. Companies are staying private for 12+ years now - that's longer than most people stay in their homes. Yet talented professionals and investors keep joining these companies without asking one simple question: "Will I be alloud to sell some of my shares?" In 15 years: • Your children might start college • You'll likely want to buy a home • Life will present opportunities requiring capital Betting everything on a future IPO or M&A event? That's a very questionable strategy, especially in EMEA. Companies can have a clear position on secondary sales - yes or no - but remarkably few people even ASK. This single question could dramatically impact your financial position for the next decades. ASK IT! It should be one of the key decision factors for both employees and early investors. Interesting side note… We noticed that while A+/B/C stage employees/ex employees and investors often struggle with illiquidity, a lot of very early employees and pre-seed investors, not as much . Why? They typically have close relationships with the founders and can negotiate liquidity, SMART! #Secondary #VentureCapital
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Should Your Startup Go Public? Weighing the Pros & Cons of an IPO The IPO dream: it beckons many startups, but is it the right move for yours? Let's explore both sides of the coin. Going Public: The Allure Capital Infusion: IPO unlocks a treasure trove of investor cash to fuel growth, R&D, and strategic acquisitions. Credibility & Visibility: Public listing screams "established player" - attracting customers, partners, and top talent. Employee Motivation: Stock options incentivize your team by letting them share the company's success. Liquidity & Acquisitions: Investors get an exit path, and your company becomes a more attractive target for potential acquirers. Challenges to Consider Cost & Scrutiny: The IPO process is expensive and involves stricter regulations and reporting requirements. Short-Term Focus: Public markets often prioritize short-term gains, potentially hindering long-term vision. Loss of Control: Founders may relinquish some control as shareholders gain voting rights on key decisions. Market Fluctuations: Prepare for a rollercoaster! Stock prices can be heavily impacted by external factors. Not for Everyone: Companies with unproven models or high debt may struggle to attract investors. The Takeaway Going public is a strategic decision, not a one-size-fits-all answer. Consider your growth stage, financials, team experience, market conditions, and long-term goals. Explore alternative funding options and the impact on your company culture too! Ultimately, a successful IPO can be a powerful growth tool, but it's just one piece of the puzzle. Building a sustainable company requires a strong foundation, a clear vision, and a talented team. #startup #IPO #investment
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IPO markets looking to hit a 14 year high in terms of issuance. Giddiness is pervasive across MF managers, retail investors, private investors and startup founders. Even founders at Ser A stage beginning to think about the path to IPO and understand metrics like ROCE etc. The lack of growth and late stage funding is exacerbating this... and dont blame the founders. Most of this is healthy and good for the ecosystem. Its also true that this euphoria may not sustain and 200 cr companies may not be able to IPO then... Its just startups are about building and capturing blue ocean opportunities and not losing sight of whats the next ocean to create step function value creation is very important. The best founders would be able to think through path to IPO along without forgoing the risk-taking to continually grab opportunities to build non-linear value pools and come out ahead. #IPO #Indiastory
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Make smarter decisions about your equity compensation with real-time IPO likelyhood insights. Get personalized analysis of how upcoming IPOs could impact your stock options and RSUs - all in one dashboard. Join the waitlist now: https://www.equitywise.ai/ #EquityCompensation #IPO #TechCompensation #FinancialPlanning
There have been 191 IPOs in the US this year… vs. 1,000+ in 2021. For more venture funding to go into companies, it needs to eventually come back out, making IPO exits a critical part of the VC ecosystem. But since 2022, IPOs have been stuck. The average # of IPOs in the US from 2022 to YTD 2024 is down 60% vs. the 5yr period ending ‘21. Capital markets, and the VC industry specifically, are eagerly awaiting a resurgence of IPO activity. Most market participants we speak to expect a surge in tech IPOs to kick off in Q2 ‘25. This sparks the question: what does it take for a company to go public? Like most things in VC, it’s an art & a science. I’ll focus on the science, but the artwork includes needing to have a scaled revenue base (usually $100m+), strong growth with a path to profitability, and a really good story. The science: Preparing a company for an IPO involves many steps. Companies taking these steps may signal their readiness to go public opportunistically when market conditions are ideal. Here are some leading indicators of an IPO, and recent examples from notable VC-backed tech companies (sources below): 🔁 Hiring an experienced public company CFO — + points if this person has taken another VC-backed company public already. Ex: Canva's recent hiring of Zoom's previous CFO. 🏦 Hiring investment banks — a tier 1 bank leading an IPO is usually a positive signal to the market. Ex: Chime hiring Morgan Stanley for a possible 2025 IPO. 🧹 Cap table cleanup — not always a signal, but works in combination with the others. If you’ve been private for 10+ years, you may remove potential downward pressure on your stock by giving would-be sellers a liquidity valve before IPO lockup expiration. Ex: Stripe. 🔎 Rumors of registration statement preparation (S-1, F-1) — going public typically involves months of regulatory paperwork. Starting that process is a signal. Ex: Figma. 🤐 Confidentially filing — allows companies to gather feedback from the SEC on their registration statement without revealing too much about their financial performance to the market. Ex: Klarna. 🔔 Publicly filing — the first time the public can view a company’s registration statement, usually with placeholder IPO terms. But a clear sign the company plans to list imminently. Ex: ServiceTitan. At Caplight, we’ve seen a rise in some of these indicators, which might suggest that the IPO window is about to open. What do you think? Any IPO indicators that we missed? Any companies that should be on this tracker? #venturecapital #liquidity #IPO #unicorns #privatemarkets #goingpublic #IPOwindow #secondarymarkets
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Transforming Ideas into Apps | 100+ MVPs Delivered for Startups | Certified Bubble & AI Developer
The Silicon Valley Dream vs Reality Check Everyone talks about IPOs. The glory. The headlines. The unicorn status. But here's the truth that shocked me: Startups are 16X more likely to be acquired than go public. Let that sink in. Why aren't we talking about this more? • Most founders secretly stress about exit strategies • The "IPO or bust" mentality creates unnecessary pressure • Acquisition conversations feel taboo But look at these success stories: → MosaicML: $1.3B acquisition by Databricks → Nervana: $408M acquisition by Intel → Drawbridge: $300M acquisition by LinkedIn The real secret? Building something valuable enough that bigger players want to integrate it into their ecosystem. This is why at Posybl, we're revolutionizing the startup journey: 1. No-code Bubble development 2. AI-powered MVP building 3. Faster go-to-market strategy 4. Cost-effective compared to traditional coding 5. Focus on building real value, not just chasing IPOs Because whether you exit through acquisition or IPO, what matters is building something worth buying. Time to shift the conversation from "How do we IPO?" to "How do we create real value?" P.S. Curious - what's your ideal exit strategy? IPO dreams or strategic acquisition? Let's discuss! 💭
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Investor | Founder & CEO @Ingrains Capital | Making Startups Funding Ready | Investment & Financial | Fundraising Expert | Groomed 200+ Startups | AI/ML/SAAS Startup Growth Expert | Business plan & Pitch deck Expert |
🚀 Will 2025 Bring a Boom for Startup M&As? Here's the Reality Check 🚀 Last week, I spoke with a startup founder who was optimistic about selling their business in 2025. “Big players are on the lookout, and with our growth trajectory, we’re a perfect acquisition target.” I paused and asked a simple question: “Have you prepared your business to be M&A ready?” 👉 𝐓𝐡𝐞 𝐌𝐘𝐓𝐇: Many startup founders believe the market alone will dictate the success of mergers and acquisitions (M&As). 👉 But here’s the 𝐓𝐑𝐔𝐓𝐇: The M&A wave of 2025 will favor prepared businesses—and only those who understand the buyer's lens will reap the rewards. 👉 𝐖𝐇𝐀𝐓 𝐁𝐔𝐘𝐄𝐑𝐒 𝐖𝐈𝐋𝐋 𝐋𝐎𝐎𝐊 𝐅𝐎𝐑: 1️⃣ Sustainable Profitability - Forget overhyped valuation multiples. Buyers will value startups based on net profit before tax, not on vanity metrics like adjusted EBITDA. 2️⃣ Recurring Revenue Streams - Businesses with predictable revenue (SaaS, subscription-based models) will command higher multiples. 3️⃣ Operational Resilience: - Strong leadership teams - Diverse client base - Minimal dependency on one product or customer 4️⃣ Scalability Potential: - Buyers will ask: Can this business scale without massive reinvestment? 5️⃣ Clean Financials: - Opaque or inconsistent financial reporting will scare away potential buyers faster than market volatility. 👉 𝐇𝐎𝐖 𝐒𝐓𝐀𝐑𝐓𝐔𝐏𝐒 𝐂𝐀𝐍 𝐏𝐑𝐄𝐏𝐀𝐑𝐄 💠 Evaluate Your True Value: Stop focusing on inflated numbers. Use metrics that matter: - 1.5x–3.5x Net Profit (before tax) - Add: Free cash - Subtract: Liabilities 💠 Optimize Operational Efficiency: Cut unnecessary costs and streamline processes. 💠 Strengthen Recurring Revenue: The more predictable your income, the higher the valuation. 👉 𝐓𝐇𝐄 𝐁𝐑𝐔𝐓𝐀𝐋 𝐓𝐑𝐔𝐓𝐇: 2025’s M&A market won’t bring a springtime for everyone. It will reward startups that are disciplined, transparent, and scalable. So, ask yourself: Is your startup ready to shine when opportunity knocks? Drop your thoughts or questions about prepping for 2025’s M&A wave below! Let’s discuss. #investors #founders #M&A #startups #funding #acquisition #merger
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There have been 191 IPOs in the US this year… vs. 1,000+ in 2021. For more venture funding to go into companies, it needs to eventually come back out, making IPO exits a critical part of the VC ecosystem. But since 2022, IPOs have been stuck. The average # of IPOs in the US from 2022 to YTD 2024 is down 60% vs. the 5yr period ending ‘21. Capital markets, and the VC industry specifically, are eagerly awaiting a resurgence of IPO activity. Most market participants we speak to expect a surge in tech IPOs to kick off in Q2 ‘25. This sparks the question: what does it take for a company to go public? Like most things in VC, it’s an art & a science. I’ll focus on the science, but the artwork includes needing to have a scaled revenue base (usually $100m+), strong growth with a path to profitability, and a really good story. The science: Preparing a company for an IPO involves many steps. Companies taking these steps may signal their readiness to go public opportunistically when market conditions are ideal. Here are some leading indicators of an IPO, and recent examples from notable VC-backed tech companies (sources below): 🔁 Hiring an experienced public company CFO — + points if this person has taken another VC-backed company public already. Ex: Canva's recent hiring of Zoom's previous CFO. 🏦 Hiring investment banks — a tier 1 bank leading an IPO is usually a positive signal to the market. Ex: Chime hiring Morgan Stanley for a possible 2025 IPO. 🧹 Cap table cleanup — not always a signal, but works in combination with the others. If you’ve been private for 10+ years, you may remove potential downward pressure on your stock by giving would-be sellers a liquidity valve before IPO lockup expiration. Ex: Stripe. 🔎 Rumors of registration statement preparation (S-1, F-1) — going public typically involves months of regulatory paperwork. Starting that process is a signal. Ex: Figma. 🤐 Confidentially filing — allows companies to gather feedback from the SEC on their registration statement without revealing too much about their financial performance to the market. Ex: Klarna. 🔔 Publicly filing — the first time the public can view a company’s registration statement, usually with placeholder IPO terms. But a clear sign the company plans to list imminently. Ex: ServiceTitan. At Caplight, we’ve seen a rise in some of these indicators, which might suggest that the IPO window is about to open. What do you think? Any IPO indicators that we missed? Any companies that should be on this tracker? #venturecapital #liquidity #IPO #unicorns #privatemarkets #goingpublic #IPOwindow #secondarymarkets
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Knowledge Seeker/Distributor & Opinions/Posts are Personal
4moInnovation at the big tech companies flowing like molasses, hence, inorganic growth strategies, vertical and /or horizontal… it’s cheaper (than starting from scratch), less risky (number of risks removed), and faster (adds to bottom line most of the times)… my students in finance class undertook Apple project, and one of the identifiers was growth in growth area(#Ai), where Apple acquired a Canadian Ai startup … best use of and return on the surplus cash, compared to dividends and buybacks, at times!