According to Heidi Huntsman, partner at UV Partners, who spoke yesterday at the Mountain West Venture Group lunch, the average length of time between initial funding and a company’s IPO is now over 5 years (it used to be as low as 3 years), and the average level of funding raised by company’s that have an IPO is now $90 million.
The pre-IPO company I know best, MyFamily.com, almost exactly matches the average IPO profile that Heidi gave. Its first angel investment round was in July 1998 and its first venture funding was December 1998. It has raised a total of $90.5 million in the 5 1/2 years since its first VC round. It has a great management team, growing revenue, and strong profits.
The IPO market is still looking primarily for strong companies. Alibris pulled its IPO last month due to lack of interest. It lost $5 million last year on revenue of $45 million.