The Official SaaStr Podcast: SaaS | Founders | Investors

SaaStr 788: The Real Data on What it Takes to Go Big and Eventually IPO with Meritech Capital

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Feb 21, 2025

Dive into the intricate journey of SaaS companies aiming for an IPO. Discover what it takes to craft a compelling growth narrative and the importance of operational efficiency. Gain insights on key metrics like Annual Recurring Revenue and net retention rates. Learn from successful companies like HubSpot and CrowdStrike, emphasizing the significance of durable revenue and strong unit economics. Plus, don’t miss the hype around an upcoming event for SaaS and AI leaders, brimming with networking and fundraising opportunities.

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ADVICE

Compelling IPO Story

Ensure your IPO story is compelling enough to excite even your grandmother.
Demonstrate clear market leadership, multi-product potential, and strong proof points.

INSIGHT

Limited IPO Opportunities

Only about 20 SaaS companies go public each year.
Your company needs a compelling reason for public investors to choose your stock over others.

INSIGHT

Time and Scale for IPO

Companies typically take about 10 years to reach IPO.
The average ARR at IPO has significantly increased over time.

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SaaStr 788: The Real Data on What it Takes to Go Big and Eventually IPO with Meritech Capital

Join Alex Clayton and Kathy Choi from Meritech Capital as they delve into the path to IPO for SaaS companies. With 25 years of experience and over 60 IPOs, they explore the size, performance, qualitative factors, and post-IPO success metrics that matter. Learn essential considerations for going public, from creating a compelling story to demonstrating durable growth, operational excellence, and predictable business outcomes.

They also provide case studies of successful companies like HubSpot and CrowdStrike, underscoring the importance of durable, long-term revenue growth and strategic multi-product approaches.

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