Want To Go Public? Be Old, Profitable And Based In California


The IPO window is finally opening again with registrations picking up, and the WSJ has decided to take a look at data on the 44 US venture-backed companies that have filed to go public and see what trends come up.

The bottom line? If you’re not Groupon it takes about a decade to grow into IPO material, profits really do matter, and California is still the home of the VC-backed success.

Here’s what we learned:

  • Tech is still the biggest sector. Health care is second, and clean tech still isn’t delivering. Within tech, the biggest categories are consumer services and finance.
  • More than half the companies are in California. And more than half of those are in Silicon Valley. Only one is in New York.
  • Of the 30 tech companies in the pipeline, 19 are profitable. 13 have revenues over $100 million, and 23 over $50 million.
  • The biggest VC winners are New Enterprise Associates, Accel Partners and Intel Capital, in that order.

Go read the whole thing →

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