Highlights from the 2Q07 Software Equity Report

The Software Equity Group has released the 2Q07 Software Equity Report. It’s a great piece of research on the market. Here a few highlights:

  • Overall software industry growth from $211B to $305B between 2005 and 2010, reflecting a 7.6% CAGR (per IDC)
  • There were 6 software IPOs in 1H07 raising an aggregate $739M
  • The median software IPO raised $80M, with median enterprise value $298M, and median next fiscal year estimated growth of 43.8%
  • There are 12 companies in the software IPO pipeline with median annual revenues of $75.8M, median net income of $0 (I guess profitability is not a constraint), and a median proposed offering size of $86.3M
  • Software M&A was down slightly in 2Q07 from $26.3B to $25.4B, with a median valuation of 2.3x TTM revenues

SandHill.com blogs about the recently released report, here.

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