What can the IPOs this month teach us about expectations of our own companies?
| Series A (MM) | Years from Series A | Market Cap (MM) | CAGR | ||
| Spotify | Music Streaming | $21.60 | 10 | $27,000.00 | 104.03% |
| Zuora | Accounting software | $6.50 | 10 | $1,400.00 | 71.13% |
| Docusingn | Digital signature and rights management | $4.60 | 14 | $4,500.00 | 63.53% |
| Smartsheets | Cloud-based collaboration | $1.50 | 8 | $990.00 | 125.13% |
| Average | $8.55 | 10.5 | $8,472.50 | 90.96% |
Valuations that doubled every year for 10 years in a row is what got these companies such stunning valuations. Do we direct our own companies to look for this kind of growth in valuation? Do we understand the alignment of costs and revenues to scale our companies at this rate? (Dear membership, you can find the proper valuation and CAGR values in the shared Google Drive. The calculations here are based on cash infusion rather than valuation at the time of Series A.)