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.
I’m Dave Kellogg, advisor, director, consultant, angel investor, and blogger focused on enterprise software startups. I am an executive-in-residence (EIR) at Balderton Capital and principal of my own eponymous consulting business.
I bring an uncommon perspective to startup challenges having 10 years’ experience at each of the CEO, CMO, and independent director levels across 10+ companies ranging in size from zero to over $1B in revenues.
From 2012 to 2018, I was CEO of cloud EPM vendor Host Analytics, where we quintupled ARR while halving customer acquisition costs in a competitive market, ultimately selling the company in a private equity transaction.
Previously, I was SVP/GM of the $500M Service Cloud business at Salesforce; CEO of NoSQL database provider MarkLogic, which we grew from zero to $80M over 6 years; and CMO at Business Objects for nearly a decade as we grew from $30M to over $1B in revenues. I started my career in technical and product marketing positions at Ingres and Versant.
I love disruption, startups, and Silicon Valley and have had the pleasure of working in varied capacities with companies including Bluecore, FloQast, GainSight, Hex, MongoDB, Pigment, Recorded Future, and Tableau.
I currently serve on the boards of Cyber Guru (cybersecurity training), Jiminny (conversation intelligence), and Scoro (work management).
I previously served on the boards of Alation (data intelligence), Aster Data (big data), Granular (agtech), Nuxeo (content services), Profisee (MDM), and SMA Technologies (workload automation).
I periodically speak to strategy and entrepreneurship classes at the Haas School of Business (UC Berkeley) and Hautes Études Commerciales de Paris (HEC).