Category: IPO

A smaller list of IPOs in November 2018 compares with the 41 of November 2017 to spell a slight slowdown in the IPO markets this year.  Renalytix AI was founded as a special purpose venture this year from the outset and was expecting to go public (so don’t try this at home).

Company	Categories	Years from Founding	Valuation
Babytree	Baby, Child Care, Parenting, Social Media	12.9	$1,500,000,000.00
Weidai	Financial Services, Lending, Payments	7.4	$699,000,000.00
Vapotherm	Biotechnology, Health Care, Medical Device	19.9	$233,800,000.00
Eton Pharmaceuticals	Biopharma, Biotechnology, Health Care, Pharmaceutical	1.9	$101,500,000.00
Renalytix AI	Artificial Intelligence, Health Care, Health Diagnostics	0.8	$85,396,334.00
Shekel Brainweigh	Point of Sale, Retail Technology	47.9	$35,110,712.00
Nanoveu	Electronics	6.9	$19,381,185.00
SecureMetric Technology	Security	11.9	$14,512,093.00

Multiple companies in the Software and Biotech category help us see the average years to IPO from founding of:

Software Years to IPO	Biotech Years to IPO
11.4	8.0

And the remaining public companies:

Company	Categories	Years from Founding	Valuation
SolarWinds	Cloud Management, Enterprise Software, Information Technology, IT Infrastructure, IT Management, Management Information Systems, Network Security, Software, Virtualization	19.8	$4,649,000,000.00
PINTEC	Financial Services, Information Technology, Software	6.8	$3,115,000,000.00
Elastic	Cloud Computing, Open Source, Real Time, Search Engine, Software	6.7	$2,501,000,000.00
Livent	Battery	27.8	$2,431,000,000.00
Shurgard Self-Storage	Self-Storage	24.8	$2,362,948,960.00
Allogene Therapeutics	Biotechnology, Health Diagnostics, Pharmaceutical	1.8	$2,074,000,000.00
Neoen	Energy, Finance, Renewable Energy	10.8	$1,610,174,462.00
Guardant Health	Biotechnology, Health Care, Health Diagnostics	6.8	$1,587,000,000.00
Upwork	Freelance, Marketplace, Peer to Peer	19.8	$1,561,000,000.00
YETI Coolers	Outdoors, Sporting Goods	12.8	$1,505,000,000.00
Anaplan	Enterprise Software, Information Technology, Sales	12.8	$1,400,000,000.00
Orchard Therapeutics	Biotechnology, Genetics, Health Care, Health Diagnostics	3.8	$1,176,000,000.00
WestWing	E-Commerce, Home Decor, Home Renovation, Interior Design, Retail, Retail Technology	7.8	$607,763,520.00
Axonics Modulation Technologies	Health Diagnostics, Medical Device, Software	6.8	$400,000,000.00
Twist Bioscience	Biotechnology, Chemical, Health Care	5.8	$372,400,000.00
Kodiak Sciences	Biotechnology, Health Care, Therapeutics	9.8	$365,000,000.00
Osmotica Pharmaceutical	Pharmaceutical	18.8	$360,649,968.00
Equillium	Biopharma, Biotechnology, Life Science	1.8	$234,000,000.00
LogicBio Therapeutics	Biotechnology, Genetics	4.8	$219,377,990.00
Gamida Cell	Biotechnology, Medical Device, Therapeutics	20.8	$165,000,000.00
PhaseBio Pharmaceuticals	Biotechnology, Medical, Medical Device, Pharmaceutical	16.8	$119,000,000.00
Valuenex Japan, Inc.	Information Technology, Intellectual Property	12.3	$93,386,817.00
Straker Translations	E-Learning, Language Learning, Software	19.0	$56,152,202.00
PINCHme	Consumer Goods, Retail, Shopping	6.8	$44,637,780.00
Wiseway Group	Freight Service, Logistics	13.8	$42,883,347.00
identitii	Financial Services, Information Technology, Payments	4.0	$40,000,000.00
Security Matters	Consumer Software, Software	10.8	$14,271,819.00
Stealth Global	Logistics, Supply Chain Management	4.8	$13,654,810.00

We’ve picked up this month with more IPOs.  Elanco and IRCON are two old technology companies who have kept up with the new technology and released a lot of value to shareholders with their IPOs this month.  A few Cannabis companies went public this month but it was difficult to understand when they were founded and were left off the list.  Qutoutiao is a news recommendation app with a focus on light reading with entertainment as its main content.  It also went public within 3 years of its founding in Shanghai.

Company	Categories	Years from Founding	Valuation
Meituan-Dianping	Advertising, Apps, Guides, Information Services, Internet, Local Business	15.5	$55,000,000,000.00
HaiDiLao Hotpot	Food and Beverage, Restaurants	24.7	$12,000,000,000.00
Elanco	Health Care, Pet, Pharmaceutical	64.8	$8,550,000,000.00
NIO	Automotive, Electric Vehicle, Electronics, Manufacturing, Transportation	4.7	$6,422,000,000.00
Farfetch	E-Commerce, Fashion, Internet, Marketing, Online Auctions	10.7	$5,800,000,000.00
Funding Circle	Finance, Financial Services, FinTech, Personal Finance	8.1	$1,500,000,000.00
Eventbrite	Association, Event Management, Events, Internet, SaaS, Ticketing	12.7	$1,750,000,000.00
Qutoutiao	Apps, News, Social News	2.7	$1,700,000,000.00
SurveyMonkey	Human Resources, Market Research, Marketing, SaaS, Service Industry, Software	19.7	$1,466,000,000.00
Hua Medicine	Health Care, Medical, Pharmaceutical	8.7	$1,740,000,000.00
IRCON International	Construction, Railroad	42.8	$508,640,021.11
Arvinas	Biotechnology, Health Care, Pharmaceutical, Therapeutics	5.7	$514,500,000.00
Gritstone Oncology	Biotechnology, Health Care, Natural Resources, Therapeutics	3.7	$432,428,295.00
Principia Biopharma	Biopharma, Biotechnology, Life Science	10.7	$386,000,000.00
Sutro Biopharma	Biotechnology, Information Technology, Medical	15.7	$342,000,000.00
FVCbank	Banking, Commercial Lending, Finance, Financial Services, Personal Branding	11.7	$256,500,000.00
Entasis Therapeutics	Health Care, Medical, Pharmaceutical	3.7	$196,000,000.00
Bank7	Banking, Financial Services	14.7	$193,500,000.00
Capital Bancorp	Banking, Commercial Lending, Finance, Financial Services	20.7	$164,500,000.00
Vintage Energy	Energy, Mining, Oil and Gas, Renewable Energy	1.7	$52,800,000.00

 

A mixed bag of 9 major IPOs with valuations, and known start dates.  Sonos, a home electronics music hub, and Arlo Tech, a home video monitoring hub, lead a light month.  Cushman & Wakefield also IPO’s this year, but the company is easily 100 years old and we consider it a bit of a red herring in the data so we excluded it.

Company	Categories	Years From Founding	Valuation
Sonos	Audio, Consumer Electronics, Hardware, Music, Wireless	16.1	$1,475,769,285.00
Arlo Technologies	Internet of Things, Security, Wireless	4.6	$1,163,440,000.00
Grameen Koota	Finance, Micro Lending	19.7	$688,065,683.27
Mesa Air Group	Aerospace, In-Flight Entertainment, Travel	36.6	$400,000,000.00
Aridis Pharmaceuticals	Biotechnology, Content Discovery, Health Care, Pharmaceutical	15.6	$102,573,796.00
Argo Mining	Information Services, Information Technology	1.6	$61,000,000.00
BioNano Genomics	Biotechnology, Genetics, Health Diagnostics, Medical	15.6	$58,182,478.00
BigDish	Apps, E-Commerce, Food and Beverage, Hospitality, Marketing, Reservations, Restaurants	5.6	$13,360,000.00
Kleos Space	Geospatial, Location Based Services, Navigation, Satellite Communication	1.6	$21,325,500.00

That magic 10 years from founding to listing on the stock market for the top categories continues as a true benchmark.  Xiaomi goes public and may become the top cell-phone producer in the coming years.  Pinduoduo another Asian-HQd company IPOs this month.  A weed company rushed to market as well.

Therapeutic		Financial		Biotechnology
Average Valuation	Years to Exit	Average Valuation	Years to Exit	Average Valuation	Years to Exit
$829,857,142.86	9.1	$579,585,000.00	11.6	$642,738,000.00	9.9

Here’s the rest of the list.

Company	Category	Years from Founding	Valuation
Xiaomi	Consumer Electronics, Internet, Mobile	8.3	$52,700,000,000.00
Pinduoduo	E-Commerce, E-Commerce Platforms, Group Buying	2.9	$24,000,000,000.00
Tenable Network Security	Compliance, Network Security, Risk Management, Security	15.9	$2,094,000,000.00
Ascletis	Health Care, Medical, Therapeutics	7.6	$2,000,000,000.00
Cango	Automotive, Autonomous Vehicles	8.6	$1,800,000,000.00
Rubius Therapeutics	Biotechnology, Health Care, Therapeutics	5.5	$1,778,000,000.00
Bloom Energy	CleanTech, Energy, Oil and Gas, Wind Energy	17.6	$1,600,000,000.00
Tilray	Health Care, Health Diagnostics, Marijuana, Medical	5.5	$1,547,000,000.00
51 Credit Card Manager	Billing, Credit Cards, Financial Services, FinTech, Payments, Transaction Processing	6.5	$1,360,000,000.00
Endava	Outsourcing, Software	17.6	$1,060,000,000.00
Inke	Apps, Mobile, Video	12.5	$990,900,000.00
Allakos	Biotechnology, Health Care, Therapeutics	6.6	$728,000,000.00
Jia.com	Home Decor, Interior Design, Manufacturing	11.5	$5,567,000,000.00
Jiguang	Financial Services	7.6	$650,000,000.00
TCNS Clothing	E-Commerce, Fashion, Retail, Social Shopping	16.6	$40,825,000,000.00
Replimune Group	Health Care, Medical, Therapeutics	3.4	$462,000,000.00
Crinetics Pharmaceuticals	Biotechnology, Pharmaceutical, Therapeutics	10.5	$391,000,000.00
Establishment Labs	Health Care, Manufacturing, Medical Device	14.6	$332,000,000.00
Bojun Education	Education	17.6	$2,248,000,000.00
Neuronetics	Biotechnology, Medical Device, Therapeutics	15.5	$284,000,000.00
Mind Gym	Professional Services, Training	19.5	$145,000,000.00
Liquidia Technologies	Biopharma, Nanotechnology, Therapeutics	14.6	$166,000,000.00
Coastal Financial	Financial Services	15.6	$165,340,000.00
#REF!	Cooking, Food and Beverage, Food Delivery	4.3	$199,467,000.00
Marley Spoon	Financial Services	16.6	$143,000,000.00
First Western Financial	Chemical	13.6	$65,000,000.00
#REF!	Civil Engineering, Industrial Engineering	7.5	$57,646,000.00
Calix Ltd.	Biotechnology, Health Care, Pharmaceutical	11.6	$32,690,000.00
Primero Group	Amusement Park and Arcade, Animation, Augmented Reality, Leisure, Virtual Reality	1.5	$20,000,000.00
Adial Pharmaceuticals	Manufacturing	19.6	$15,500,000.00
Immotion Group Plc	E-Commerce Platforms, Social Network	5.5	$20,020,046.00
Trackwise Designs PLC	Renewable Energy, Solar	56.6	$1,048,000,000.00
Social Life Network, Inc.	Mining, Precious Metals	13.6	$604,000,000.00
Waa Solar Ltd	Electronics, Manufacturing	22.5	$370,000,000.00

Several Biotechnology and Pharmaceutical companies rushed to market to get valuations averaging around $0.5 Billion.  E-commerce companies continued to master the high-valuation metrics of over $2 Billion on average.

Ecommerce		Pharmaceuticals		Biotechnology
Average Valuation	Years to Exit	Average Valuation	Years to Exit	Average Valuation	Years to Exit
$2,207,800,000.00	13.5	$539,600,000.00	6.8	$512,222,222.22	4.9

The IPOs for June:

Company	Category	Years from Founding	Valuation
Contemporary Amperex Technology	Automotive, Battery, Electric Vehicle, Manufacturing	7.4	$9,310,000,000.00
Mercari	E-Commerce, Internet, Mobile	5.4	$3,700,000,000.00
Uxin	Auctions, Automotive, E-Commerce, Online Auctions	6.8	$3,500,000,000.00
BrightView Landscapes LLC	Business Development	79.5	$2,181,000,000.00
BJ’s Wholesale Club	E-Commerce, Retail, Shopping	34.5	$2,147,000,000.00
Pu-Xin Education	EdTech, Education	4.5	$1,585,000,000.00
Avalara	E-Commerce, Enterprise Software, Software	14.5	$1,364,000,000.00
U.S. Xpress Enterprises	Transportation	33.5	$768,000,000.00
Tricida	Biotechnology, Health Care, Pharmaceutical	5.5	$763,000,000.00
Autolus Limited	Biopharma, Medical, Pharmaceutical	4.5	$657,000,000.00
Eidos Therapeutics	Biopharma, Biotechnology, Pharmaceutical	4.9	$608,000,000.00
Translate Bio	Biotechnology, Genetics, Medical, Therapeutics	7.5	$582,000,000.00
Aptinyx	Biopharma, Biotechnology, Medical	3.5	$520,000,000.00
Magenta Therapeutics	Biotechnology, Medical, Therapeutics	2.5	$515,000,000.00
Domo	Business Intelligence, Enterprise Software, SaaS, Software, Web Development	6.6	$511,000,000.00
Forty Seven	Biotechnology, Clinical Trials, Health Care	3.5	$479,000,000.00
Neon Therapeutics	Health Care, Medical, Therapeutics	3.5	$451,000,000.00
EverQuote	Auto Insurance, Insurance, Internet	8.5	$446,000,000.00
Avrobio	Biotechnology, Genetics	3.5	$440,000,000.00
electroCore	Health Care, Medical Device, Therapeutics	13.5	$426,000,000.00
MeiraGTx	Biotechnology, Health Care, Therapeutics	–	$407,000,000.00
Verrica Pharmaceuticals	Health Care, Medical, Pharmaceutical	5.5	$374,000,000.00
Codemasters	Gaming, Racing, Sports, Video Games	32.4	$280,000,000.00
Charah Solutions	Energy Management, Environmental Consulting, Power Grid	31.5	$359,000,000.00
i3 Verticals	E-Commerce, Financial Services, Transaction Processing	6.5	$328,000,000.00
Xeris Pharmaceuticals	Biotechnology, Health Care, Pharmaceutical	13.5	$296,000,000.00
Lovesac	Consumer Goods, Furniture, Retail	20.5	$206,000,000.00
Anexo Group	Legal	12.5	$110,000,000.00
Enensys Technologies	Telecommunications	–	$59,000,000.00
HyreCar	Automotive, Peer to Peer, Rental, Ride Sharing, Small and Medium Businesses	4.5	$58,000,000.00
Tekmar Energy	Industrial Engineering, Industrial Manufacturing, Oil and Gas	33.5	$65,000,000.00
Cake Box	Bakery, Confectionery, Food Delivery, Snack Food	15.5	$43,200,000.00
i-nexus	Software	17.5	$23,360,000.00

A couple of Financial Services and Banking IPOs last month with a slow compound annual growth rate, six Medical and BioTech companies and one rapid E-Commerce and Games Platform.  Software remains one of the fastest ways to liquidity.  Civil Engineering and Construction takes the longest to get to a liquidity event if we look from the point-of-view of IPOs last month.

Organization Name	Categories	IPO Date	Valuation at IPO	Years	CAGR
GreenSky	Consumer Lending, Credit, Financial Services	18-05-24	$4,350,000,000	12.4	6.0
Huya.com	E-Commerce, Online Games, Video Games	18-05-11	$2,418,000,000	4.4	142.1
ASLAN Pharmaceuticals	Biotechnology, Medical, Pharmaceutical	18-05-04	$1,120,000,000	8.3	12.2
Origin Bank	Banking	18-05-08	$748,000,000	6.4	24.9
UNITY Biotechnology	Biotechnology, Health Care, Medical	18-05-02	$712,000,000	9.3	8.9
Construction Partners	Civil Engineering, Construction	18-05-04	$609,000,000	17.3	3.2
Evelo Biosciences	Biotechnology, Medical, Therapeutics	18-05-09	$509,000,000	3.4	394.8
Inspire Medical Systems	Biotechnology, Health Care, Medical Device, Therapeutics	18-05-03	$323,000,000	11.3	5.6
Iterum Therapeutics	Medical, Pharmaceutical, Therapeutics	18-05-24	$181,000,000	3.4	270.8
Voluntis	Health Care, ICT, Medical Device, Software	18-05-30	$120,000,000	17.4	2.9

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.)