Posted on Monday, Jul 9th 2012
We’re seeing a lot of companies in the $50 million-$150 million revenue range looking to go public in the next 18 months. Given how expensive it is to be a public company these days, it seems to me that once public, these companies would have a hard time with the regulatory costs. It would be better to wait a couple years and get to $200 million-$250 million in revenue before taking the leap into the public market. In some cases, we are seeing companies deciding against an IPO until later, which, in our view, is a better strategy.
Meanwhile, here is a list of companies we’ve covered recently that are waiting in the IPO wings:
- Workday: IPO or Acquisition by Salesforce?
- Trion World Goes From Zero to $100M in Nine Months
- Hulu Shies Away From Public Market
- ON24: Yet Another SaaS Company Eyeing an IPO
- BrainShark: IPO or Acquisition Target?
- HubSpot Aims for 2013 IPO
- AppSense Also in the IPO Pipeline
- Marin Software Readying an IPO
- CollabNet Eyeing IPO
- RingCentral Gearing for IPO
- Glam Media Prepares for IPO
Most of these companies have robust business models, especially the SaaS- or subscription-style businesses. Glam Media’s business model is display advertising, which is susceptible to ad rate fluctuations.
Nonetheless, in case you were feeling despondent about the Instagram type of over-hyped fluff deals, rest assured, real entrepreneurs are building real companies with sure hands.