Weekly Update #241
EquityZen has produced these weekly updates for secondary investors, shareholders and company representatives.
If you find this useful, subscribe to our weekly newsletter!
In order to view EquityZen's Investment Offerings, you must be an Accredited Investor.
With Zscaler and Spotify set to lead the charge in tech IPOs this year, we take a look at some historical metrics that can help put S-1 numbers in context (S-1s, or F-1s for foreign issuers, are the documents that companies must file prior to public listings). To this end, we looked at historical metrics for past software IPOs immediately prior to and up through the IPO year. We limit our short analysis to software to minimize variances in the data due to industry mix in any particular IPO vintage (e.g. VC-backed retail companies and software companies can have wildly different margins). Note that software companies do generally form the bulk of VC-backed IPOs anyway.
Some quick observations from our data:
Source: Ycharts, EquityZen Securities
Please note several limitations in our data set currently. Notably, financial metrics were not readily available for some companies historically. Further, our historical measurements include IPO year results when many IPOs take place before these are available. This was the quickest - albeit far from perfect - way to attempt to capture the financial outlook for the company as they entered into IPO (which factors heavily into valuation and IPO-readiness).
Other items we are reading:
Funding Rounds Since Last Week
To learn more about whether you're eligible, typical investment size, company valuation, and share price, request access here.