Run the Numbers How much revenue do you need to IPO in 2025?
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Feb 15, 2025 Explore the dramatic shift in IPO revenue expectations over the last decade. Companies now need at least $500 million in revenue to even consider going public. Delve into the evolution of successful IPOs from the SaaS boom to high-profile deals like Coinbase and Airbnb. Discover the implications of the recent market freeze and look ahead to potential IPO candidates in 2025, including Stripe and Databricks. It's a new landscape, and the stakes have never been higher!
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Higher IPO Bar
- The IPO bar has risen significantly, requiring substantially more revenue than in the past.
- Companies that went public in the 2010s with $100-250M in revenue would likely need $500M+ today.
Early 2010s IPOs
- In the early 2010s, companies like RingCentral, 2U, Etsy, and Box went public with $100-240M in revenue.
- These were early movers in their respective industries, benefiting from trends like cloud communication and the SaaS boom.
2021 Mega-IPOs
- 2021 saw a record number of IPOs, including some of the largest ever, like Coinbase, Snowflake, Airbnb, and DoorDash.
- These companies went public with revenues ranging from $592M to $3.4B, raising billions and setting a new standard.