The 2015 Tech IPO Pipeline has 588 investor-backed private technology companies in the United States today with valuations, real or rumored, of greater than $100 million and who are demonstrating significant momentum based on our proprietary private company Mosaic ratings.
Like last year’s list, the 2015 Tech IPO Pipeline currently represents the cream of the crop within investor portfolios, and those companies that may be on their way to an IPO given sustained product, market and financing momentum.
Of course, it should be explicitly mentioned that not all of these 588 companies will make it to an IPO next year or ever. Many have just crossed the $100M valuation threshold and, with the time to IPO increasing significantly, have their work cut out for them before they can even ponder the option of going public. Others among this group will never actually breakthrough to the level needed to be deemed public market worthy, or will be acquired along the way. And some will fall short, get out-executed, and may never see a liquidity event.
But as of this moment, these are the companies in tech you should know.
Below is a high-level summary of some of the report’s highlights. For all of the findings, download the entire report. It’s free.
$64B raised by Tech IPO Pipeline companies
As hedge funds, mutual funds, corporates, sovereign wealth and private equity investors piled into U.S. tech companies in 2014, the 588 companies in the pipeline have raised a whopping $64.27B across more than 2,700 financing deals. $24B (38.4%) of that funding came in 2014.
Notably, the abundance of non-traditional investors has pushed up the average raised by IPO Pipeline companies to $111M (vs. $101M last year). The median has stayed range-bound.
The billion dollar valuation club spikes
The number of Tech IPO Pipeline companies that entered the billion-dollar valuation club skyrocketed in 2014. In fact, private VC-backed companies that notched a billion-dollar valuation in 2014 represented a 160%+ increase from the number of companies that first raised at a $1B+ valuation in 2013.
While tech companies in the pipeline cover a wide spectrum of valuations with some just entering nine figure valuation territory, there are 42 companies on the list that have raised a financing round at a real or rumored valuation of $1B or more. The full list of companies is below:
Sequoia Capital, Andreessen Horowitz surge
Last year, Kleiner Perkins Caufield & Byers led the list of investors with the highest quantity of Tech IPO Pipeline companies within its portfolio. While Kleiner again tops the list this year by quantity, Sequoia Capital and Andreessen Horowitz each saw the biggest jump in the number of portfolio companies in the pipeline. Founded in 2009, Andreessen Horowitz now ties for fourth in this year’s rankings.
The graphs below show when the top four investors first invested in the companies that figure into the Tech IPO pipeline. As shown below, Kleiner most often first invested at the mid-stage (Series B/C), while Andreessen Horowitz most frequently invested in the Seed/Series A stages.
Looking purely at billion-dollar companies on the Tech IPO Pipeline, Sequoia Capital ranks highest while Accel Partners ranks highest for getting in early in billion-dollar valuation club. (Note: A chart of the top 10 investors in the billion-dollar club by entry point is available in the full report.)
New York trounces Massachusetts
Silicon Valley dominates as home to the most Tech IPO Pipeline companies with over 300. But New York ranks as a strong second and, as a result of sizable tech financings in 2014, now counts 57% more Tech IPO Pipeline companies than rival tech hub Massachusetts. California, driven by Silicon Valley, is home to more than 50% of the 2015 Tech IPO Pipeline.
Sign up to receive the entire 2014 Tech IPO Pipeline report for free by entering your business email address in the form below.
Last Year’s Tech IPO Pipeline results
Last year, we identified 590 tech companies that represented the cream of the crop of investor portfolios, and here is how we did:
590 Tech IPO Pipeline companies identified in December 2013
43% have exited and/or raised additional financing since the list was issued
67 have exited in for an aggregate value of $33.3 billion
192 of the companies have raised additional financing totaling $12.9 billion
Last year’s Tech IPO Pipeline companies were identified using the CB Insights venture capital database and were synthesized by looking at technology companies in the United States with valuations, real or rumored, of greater than $100 million or who were demonstrating significant momentum based on our private company Mosaic ratings.
At the time, these 590 companies represented the cream of the crop within VC and private equity portfolios. Now just a year later, 67 of the firms on the 2013 Tech IPO Pipeline have exited via IPO or M&A for an aggregate disclosed exit valuation of $33.3 billion.
While capital efficiency is the mantra of tech investors, positioning a company to go public requires significant capital. And so, it’s not surprising that another 192 companies on last year’s list have gone on to raise additional financing. In the last year, these 192 firms have raked in an additional $12.9 billion in financing. Among the IPO Pipeline candidates to raise substantial funding rounds this year are Square, Cloudera, AirBnB and Actifio
The 2015 Tech IPO Pipeline will highlight over 500 over the most promising private tech companies and will analyze the industries they are targeting, the investors who’ve backed them, and the geographies they call home among other factors.
To receive the 2015 Tech IPO Report pre-release, sign up by entering your business email address in the form below.
Photo credit: George Rex