Don't Overdose on VC: Lessons from 71 Startup IPOs
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We looked at five years of funding and IPO data to see if there is a relationship between the amount of funding a startup receives from venture capitalists and its ultimate success on the stock market. What did we find? Scroll right >>>Read our blog post on TechCrunchFollow us on TwitterLike us on FacebookJoin our mailing list!Here's what we found...
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All rounds are recorded in millions of dollars ($)FoundedR1YearR2YearR3YearR4YearR5YearR6YearR7YearR8YearR9YearOther FundingYearTickerIPO Share PriceCurrent Share PricePrice Change% ChangeIPO YearIPO RaiseCo. AgeYears to IPOAcquirerAcquired YearAcquired PriceSectorGeoFunding RankVC RaisedVC+IPOCurrent Market Cap There isn't a strong correlation between the amount of money a company raises and it's ultimate success on the stock market. 14 of the top 20 IPO performers of the last 5 years raised less than $125M in total VC. Here are some more stats:
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Groupon20071.0020074.80200830.002009135.002010950.00201116.2020110.00-0.00-0.00-250.002016GRPN203.01-16.99â–¼ -84.95%2011$700,000,00094---B2CChicago1$1,137,000,000$1,837,000,000$1,682,866,307
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Zynga20070.00200710.0020085.03200825.00200815.19200915.002010300.0020106.342010490.0020110.00-ZNGA103.52-6.48â–¼ -64.80%2011$1,000,000,00094---B2CSF2$866,560,000$1,866,560,000$3,122,981,302Total amout of VC RaisedInvestmentMarket CapMultiple
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Twitter20065.00200715.00200835.002009100.0020095.172010200.002010400.0020110.00-0.00-400.002011TWTR2618.32-7.68â–¼ -29.54%2013$1,820,000,000107---B2CSF3$760,170,000$2,580,170,000$13,535,746,339Aggregate Venture Capital$10,234,723,000$675,554,709,11166
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Facebook20050.50200412.70200527.502006240.00200760.00200715.00200860.002008200.0020090.00-1,810.002008-2011FB38151.46113.46â–² 298.58%2012$16,000,000,000117---B2CSF4$615,700,000$16,615,700,000$439,679,249,943Aggregate Venture Capital (No Facebook)$9,619,023,000$235,875,459,16825
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Box20050.3520051.50200613.102008-0915.002009129.002011150.00
2012-13
100.002011150.0020140.00-0.00-BOX1418.74.7â–² 33.57%2015$175,000,0001110---B2BSF5$558,950,000$733,950,000$2,448,584,851Aggregate VC + IPO proceeds $41,792,093,000$675,554,709,11116
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Square20090.00-10.00200927.502011103.002011200.002012150.00-0.0020140.00-0.00-0.00-SQ922.9913.99â–² 155.44%2015$243,000,00076---B2CSF6$490,500,000$733,500,000$8,758,568,056Aggregate VC + IPO proceeds (No Facebook)$25,176,393,000$235,875,459,1689
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HomeAway200549.002005160.00200611.502007250.0020080.00-0.00-0.00-0.00-0.00-25.00-AWAY2738.3111.31â–² 41.89%2011$216,000,000116Expedia20153.9B2CAustin7$470,500,000$686,500,000$3,900,000,000Median VC Raised by a Startup$79,100,000$1,790,000,00023
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Wayfair2002165.00201136.002012150.0020140.00-0.00-0.00-0.00-0.00-0.00-0.00-W2962.9533.95â–² 117.07%2014$319,000,0001412---B2CBoston8$351,000,000$670,000,000$5,376,830,754Median VC Raised by a Startup (No Facebook)$78,475,000$1,736,433,15422
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Millenial Media20066.30200715.00200716.00200927.502011175.4520130.00-0.00-0.00-0.00-0.00-MM131.76-11.24â–¼ -86.46%2012$133,000,000106---B2BBaltimore9$240,250,000$373,250,000$250,565,063Average VC Raised by a Startup$144,151,028$9,514,855,05866
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Kayak20048.5020047.00200411.502006196.0020076.0020120.00-0.00-0.00-0.00-6.02-KYAK2640.0714.07â–² 54.12%2012$91,000,000128---B2CConnecticut10$229,000,000$320,000,000$1,567,733,008Average VC Raised by a Startup (No Facebook)$137,414,614$3,369,649,41725
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Chegg20072.2020074.70200825.00200857.00200975.0020106.00201125.0020122.40-0.00-37.302009CHGG12.512-0.5â–¼ -4.00%2013$187,500,00096---B2CSF11$197,300,000$384,800,000$1,122,052,12820 Most Funded (Enriched) CompaniesVC InvestmentMarket CapMultiple
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Exact Target200010.5020047.71200670.00200970.00200930.0020110.00-0.00-0.00-0.00-0.00-ET1933.7514.75â–² 77.63%2012$161,500,0001612Salesforce20132.5B2BIndianappolis12$188,210,000$349,710,000$2,500,000,00020 Most Funded Companies (Aggregate)$7,164,170,000$517,780,474,71072
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Workday200515.00200575.00200985.0020110.00-0.00-0.00-0.00-0.00-0.00-85.00-WDAY2899.9871.98â–² 257.07%2012$637,000,000117---B2BSF13$175,000,000$812,000,000$20,440,116,24520 Most Funded Companies (Average Company)$358,208,500$25,889,023,73672
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Apigee20040.00-12.00200516.00200610.00200820.00201235.00201320.00201460.0020140.00-0.00-APIC1717.380.38â–² 2.24%2015$87,000,0001211---B2BSF14$173,000,000$260,000,000$535,071,70820 Most Funded (Enriched) Companies, minus FacebookVC InvestmentMarket CapMultiple
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Zulilly20094.6020096.00201043.00201185.0020120.00-0.00-0.00-0.00-0.00-0.00-ZU2218.75-3.25â–¼ -14.77%2013$253,000,00074Liberty Interactive20162.4B2CSeattle15$138,600,000$391,600,000$2,400,000,00020 Most Funded (Aggregate)$6,653,728,000$78,661,224,76712
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Shopify20040.00-7.00201015.002011100.0020130.00-0.00-0.00-0.00-0.00-0.00-SHOP1791.8674.86â–² 440.35%2015$131,000,0001211---B2BToronto16$122,000,000$253,000,000$7,211,931,31220 Most Funded (Mean Company)$332,686,400$3,933,061,23812
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Tremor Video20050.0020068.40200611.0020080.00200818.0020092.00200940.00201037.0020110.00-0.00-TRMR102.33-7.67â–¼ -76.70%2013$75,000,000118---B2BNYC17$116,400,000$191,400,000$114,770,47520 Most Funded (Median Company)$192,755,000$2,095,000,00011
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Xoom20010.03-4.70-11.90-4.70-15.00200620.30200733.20201025.0020110.00-0.00-XOOM16259â–² 56.25%2013$101,200,0001512Paypal20150.89B2CSF18$114,830,000$216,030,000$890,000,00020 Least Funded (Efficient) CompaniesVC InvestmentMarket CapMultiple
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Care.com20063.8020062.00200710.00200820.00201025.00201150.0020120.00-0.00-0.00-46.352016CRCM1715.37-1.63â–¼ -9.59%2014$91,000,000108---B2CBoston19$110,800,000$201,800,000$453,407,21920 Least Funded (Aggregate)$623,422,000$58,702,650,54794
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Marketo20065.4020068.00200810.00200910.00201025.00201050.0020110.00-0.00-0.00-0.00-MKTO1335.2622.26â–² 171.23%2013$80,000,000107Vista Equity20161.79B2BSF20$108,400,000$188,400,000$1,790,000,00020 Least Funded (Mean Company) $31,171,100$2,935,132,52794
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Mavenir Systems200513.00200620.50200717.50200813.60101040.0020110.6620130.00-0.00-0.00-0.00-MVNR1017.947.94â–² 79.40%2013$44,500,000118Mitel20150.56B2BTexas21$105,258,000$149,758,000$560,000,00020 Least Funded (Median Company)$37,250,000$1,977,328,13653
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Linkedin20034.75200310.00200412.80200753.00200822.7020080.00-0.00-0.00-0.00-0.002016LNKD45196151â–² 335.56%2011$350,000,000138MIcrosoft201626.2B2CSF22$103,250,000$453,250,000$26,200,000,000Performance Segmented by FundraisingVC InvestmentMarket CapMultiple
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FireEye20046.50200514.50200614.50200810.2320096.00201050.0020130.0020140.00-0.00-739.272014FEYE2014.99-5.01â–¼ -25.05%2013$303,500,000129---B2BSF23$101,730,000$405,230,000$2,691,729,840>200M Raised (Average) No Facebook$567,103,333$4,515,986,1878
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Hubspot20060.5020065.00200712.00200816.00200932.00201135.0020120.00-0.00-0.00-0.00-HUBS2572.147.1â–² 188.40%2014$125,000,000108---B2BBoston24$100,500,000$225,500,000$2,641,251,069>$100M Raised (Average) $315,621,167$22,911,393,98473
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Lending Club20072.00200710.26200712.0020093.97200924.50201025.0020110.00201117.5020120.00-297.002013-2014LC155.5-9.5â–¼ -63.33%2014$1,000,000,00097---B2BSF25$95,230,000$1,095,230,000$2,177,519,856>$100M Raised (Average) No Facebook$302,574,261$4,791,052,42116
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Zillow200532.00200525.00200630.0020075.5020110.00-0.00-0.00-0.00-0.00-4.132012Z2043.5223.52â–² 117.60%2011$69,200,000116---B2CSeattle26$92,500,000$161,700,000$5,350,548,600<$100M Raised (Average)$56,591,809$2,674,069,22347
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Etsy20050.4020051.0020060.0020073.25200727.00200820.00201040.0020120.00-0.00-5.612014ETSY1613.41-2.59â–¼ -16.19%2015$267,000,0001110---B2CNYC27$91,650,000$358,650,000$1,552,028,512<$75M Raised (Average)$43,243,500$2,662,291,35862
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Boingo200115.00200210.00200365.0020060.00-0.00-0.00-0.00-0.00-0.00-50.002014WIFI13.516.072.57â–² 19.04%2011$77,900,0001510---B2CLA28$90,000,000$167,900,000$624,884,092<$65M Raised (Average)$39,639,357$2,952,157,10674
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Rapid 720007.0020082.00201050.00201130.0020140.00-0.00-0.00-0.00-0.00-0.00-RPD1618.362.36â–² 14.75%2015$103,000,0001615---B2BBoston29$89,000,000$192,000,000$795,275,489
Aggregate fundraising of 10 most and least funded companies
VC InvestmentMarket CapMultiple
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GoPro20030.21201088.0020110.00-0.00-0.00-0.00-0.00-0.00-0.00-200.002012GPRO248.22-15.78â–¼ -65.75%2014$427,000,0001311---B2CSF30$88,205,000$515,205,000$1,168,636,46010 Most Funded (No Facebook)$5,301,230,000$41,765,927,8088
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ZenDesk20070.5020081.5520096.00200919.00201060.0020120.0020140.00-0.00-0.00-0.00-ZEN925.9816.98â–² 188.67%2014$100,000,00097---B2BSF31$87,050,000$187,050,000$2,536,406,75310 Most Funded (No Facebook/Twitter)$4,729,270,000$30,730,181,4696
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Ruckus Wireless20041.5020043.5020049.00200516.00200615.0020067.50200710.75200921.7020120.00-0.00-RKUS1513.15-1.85â–¼ -12.33%2012$126,000,000128Brocade20161.5B2BSF32$84,950,000$210,950,000$1,500,000,00010 Least Funded$150,700,000$34,388,480,124228
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GrubHub20041.1020072.00200911.00201020.00201150.0020110.00-0.00-0.00-0.00-0.002012GRUB2643.4717.47â–² 67.19%2014$192,000,0001210---B2CChicago33$84,100,000$276,100,000$3,718,200,556
Average company fundraising for 10 most/least funded companies
VC RaisedMarket CapMultiple
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Service Now20042.5020055.0020066.00200941.36200917.86201210.9820120.00-0.00-0.00-0.00-NOW18104.6586.65â–² 481.39%2012$210,000,000128---B2BSF34$83,700,000$293,700,000$17,665,567,72710 Most Funded (No Facebook)$530,123,000$4,176,592,7818
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Marin Software20062.0020067.25200813.00200911.20201016.00201130.0020120.8220120.00-0.00-20.002013MRIN141.3-12.7â–¼ -90.71%2013$105,000,000107---B2BSF35$80,268,000$185,268,000$47,587,30610 Most Funded (No Facebook/Twitter)$472,927,000$3,073,018,1476
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Instructure20081.1020108.00201130.00201340.0020150.00-0.00-0.00-0.00-0.00-0.00-INST1626.710.7â–² 66.88%2015$80,960,00087---B2BUtah36$79,100,000$160,060,000$767,765,73110 Least Funded$15,070,000$3,438,848,012228
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LifeLock20056.0020066.85200725.00200840.0020090.00-0.00-0.00-0.00-0.00-100.002012LOCK90-9â–¼ -100.00%2013$141,300,000118---B2CArizona37$77,850,000$219,150,000$2,277,797,100
Public Market Performance of Enriched vs. Efficient Startups
20 Most Funded20 Least Funded
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RocketFuel20086.8020083.20200910.0020106.60201150.0020120.00-0.00-0.00-0.00-0.00-FUEL293.03-25.97â–¼ -89.55%2013$116,000,00085---B2BSF38$76,600,000$192,600,000$136,540,498Stock Price Change since IPO (ex. Facebook)55.77%120.97%
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YuMe20040.0020067.0020079.0020072.9220095.00200925.0020105.00201011.90201110.0020120.00-YUME94.75-4.25â–¼ -47.22%2013$46,110,000129---B2BSF42$75,820,000$121,930,000$169,171,354How old are these companiesCompany AgeYears to IPO
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ChannelAdvisor20017.00200418.00200530.00200720.0020080.00-0.000.00-0.00-0.00-0.00-ECOM1411.4-2.6â–¼ -18.57%2013$86,000,0001512---B2BNorth Carolina39$75,000,000$161,000,000$298,860,90820 Most Funded10.847.85
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Carbonite20052.5020063.50200615.0020075.00200721.19200820.0020100.0020110.00-0.00-0.00-CARB1018.68.6â–² 86.00%2011$53,600,000116---B2CBoston40$67,190,000$120,790,000$504,679,20420 Least Funded12.209.35
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FitBit20070.00-2.0020089.00201012.00201243.0020130.00-0.00-0.00-0.00-0.00-FIT205.23-14.77â–¼ -73.85%2015$732,000,00098---B2CSF41$66,000,000$798,000,000$1,197,384,373How do B2B vs. B2C startups stack up?VC InvestmentMarket Cap-
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OPower20071.70200714.00200850.0020100.00-0.00-0.00-0.00-0.00-0.00-0.00-OPWR2310.3-12.7â–¼ -55.22%2014$116,000,00097Oracle20160.532B2CWashington43$65,700,000$181,700,000$532,000,000B2B Aggregate$3,565,848,000$130,284,881,69137
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Palo Alto Networks200510.00200618.00200727.00200810.0020080.00-0.00-0.00-0.00-0.00-264.002012PANW42118.5976.59â–² 182.36%2012$260,000,000117---B2BSF44$65,000,000$325,000,000$10,814,748,780B2B Avg Company$89,146,200$3,257,122,04237
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Mind Body20010.0020055.60200914.0020109.00201135.0020120.8720150.00-0.00-0.00-50.002014MB1428.0514.05â–² 100.36%2015$100,000,0001514---B2BSLO45$64,470,000$164,470,000$1,249,873,408B2C Aggregate (ex-Facebook)$6,053,175,000$105,590,577,47717
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Criteo20056.60200610.4020086.36201040.0020120.00-0.00-0.00-0.00-0.00-0.00-CRTO3152.4321.43â–² 69.13%2013$251,000,000118---B2BParis46$63,360,000$314,360,000$3,397,546,125B2C Avg Company (ex-Facebook)$201,772,500$3,519,685,91617
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Jive200115.00200712.00200930.0020105.1520120.00-0.00-0.00-0.00-0.00-7.372010-2013JIVE125.28-6.72â–¼ -56.00%2011$160,000,0001510---B2BUtah47$62,150,000$222,150,000$418,746,087$200M vs. $35M (all #'s ex. Facebook)VC InvestmentMarket Cap-
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Zipcar20004.70200210.00200525.00200621.0020100.00-0.00-0.00-0.00-0.00-0.00-ZIP1812.25-5.75â–¼ -31.94%2011$174,000,0001611Avis20130.5B2CBoston48$60,700,000$234,700,000$500,000,000>$200M (Aggregate)$5,103,930,000$40,643,875,6808
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Wix20065.0020073.50200810.00201040.0020110.00-0.00-0.00-0.00-0.00-0.00-WIX16.573.757.2â–² 346.67%2013$127,000,000107---B2CTel Aviv49$58,500,000$185,500,000$3,241,726,573<$34M (Aggregate)$116,200,000$32,051,881,630276
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Pandora20001.5020007.80200412.00200535.0020090.0020100.0020110.00-0.00-0.00-0.00-P168.9-7.1â–¼ -44.38%2011$234,900,0001611---B2CSF50$56,300,000$291,200,000$2,078,727,156>$200M (Average)$567,103,333$4,515,986,1878
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Yelp20041.0020045.00200510.00200615.00200825.0020100.00-0.00-0.00-0.00-0.00-YELP1527.9212.92â–² 86.13%2012$96,000,000128---B2CSF51$56,000,000$152,000,000$2,256,380,297<$34M (Average)$12,911,111$3,561,320,181276
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Demandware200412.0020069.10200822.0020107.0020104.0020140.00-0.00-0.00-0.00-0.00-DWRE167559â–² 368.75%2012$88,000,000128Salesforce20162.8B2BBoston52$54,100,000$142,100,000$2,800,000,000>$200M (Median)$490,500,000$3,122,981,3026
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Vocera20001.04-7.10-12.00-11.26-9.00-13.16-0.00-0.00-0.00-0.00-VCRA1626.7310.73â–² 67.06%2012$80,000,0001612---B2BSF53$53,553,000$133,553,000$761,560,996<$32M (Median)$4,000,000$2,500,000,000625
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TrueCar20052.2720050.00200513.50200837.4020090.00-0.00-0.00-0.00-0.00-230.002011-2013TRUE917.588.58â–² 95.33%2014$70,000,000119---B2CLA54$53,170,000$123,170,000$1,595,409,658
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TubeMogul20060.002007-20081.5020083.00200910.00201028.66201210.0020130.00-0.00-0.00-89.202015TUBE7147â–² 100.00%2014$44,000,000108---B2BSF55$53,160,000$97,160,000$514,860,962
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Barracuda Networks200340.0020060.0020065.6120090.00-0.00-0.00-0.00-0.00-0.00-0.00-CUDA1821.923.92â–² 21.78%2013$75,000,0001310---B2BSF56$45,610,000$120,610,000$1,144,086,215
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Workiva20081.21200912.50201030.2320120.6920140.00-0.00-0.00-0.00-0.00-7.952009-2011WK1418.24.2â–² 30.00%2014$101,000,00086---B2BIowa57$44,629,000$145,629,000$746,447,861
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Ring Central200312.00200712.00200810.00201010.0020110.0020120.00-0.00-0.00-0.00-0.00-RNG1334.121.1â–² 162.31%2013$97,500,0001310---B2BSF58$44,000,000$141,500,000$2,578,243,733
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King200343.0020050.00-0.00-0.00-0.00-0.00-0.00-0.00-0.00-0.00-KING22.518-4.5â–¼ -20.00%2014$326,000,0001311---B2CDublin59$43,000,000$369,000,000$5,686,932,006
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Envivio20000.00200425.00200815.0020101.5020120.00-0.00-0.00-0.00-0.00-1.002009ENVI94.1-4.9â–¼ -54.44%2015$70,000,0001615Ericsson20150.125B2BSF60$41,500,000$111,500,000$125,000,000
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Splunk20035.00200410.00200625.0020070.0020100.00-0.00-0.00-0.00-0.00-0.00-SPLK1761.2444.24â–² 260.24%2012$230,000,000139---B2BSF61$40,000,000$270,000,000$8,361,628,992
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New Relic20083.5020086.00200810.00201015.0020110.00-0.00-0.00-0.00-0.00-180.002013-2014NEWR2343.6720.67â–² 89.87%2014$115,000,00086---B2BSF62$34,500,000$149,500,000$2,336,598,494
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Trulia20042.1020055.70200510.00200715.0020080.00-0.00-0.00-0.00-0.00-222.302013TRLA1748.4131.41â–² 184.76%2012$102,000,000128Zillow20152.5B2CSF63$32,800,000$134,800,000$2,500,000,000
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Appfolio20065.00200717.0020088.0020090.00-0.00-0.00-0.00-0.00-0.00-0.00-APPF1228.6516.65â–² 138.75%2015$71,400,000109---B2BLA64$30,000,000$101,400,000$973,350,761
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Tableau20035.00200410.0020080.0020100.00-0.00-0.00-0.00-0.00-0.00-0.00-DATA3162.0131.01â–² 100.03%2013$177,000,0001310---B2BSeattle66$29,900,000$206,900,000$4,756,870,313
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Guidewire Software20011.6020027.5020048.0020072.4020110.00-0.00-0.00-0.00-0.00-0.00-GWRE1366.4253.42â–² 410.92%2012$115,000,0001511---B2BSF65$19,500,000$134,500,000$4,822,453,723
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Veeva20074.0020080.00-0.00-0.00-0.00-0.00-0.00-0.00-0.00-0.00-VEEV2063.5443.54â–² 217.70%2013$217,000,00096---B2BSF67$4,000,000$221,000,000$8,581,238,769
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Atlassian20020.00-0.00-0.00-0.00-0.00-0.00-0.00-0.00-0.00-210.002010-2014TEAM2135.7614.76â–² 70.29%2015$462,000,0001413---B2BSydney68$0$462,000,000$7,959,910,287
71
ShutterStock20030.00-0.00-0.00-0.00-0.00-0.00-0.00-0.00-0.00-0.00-SSTK1746.5629.56â–² 173.88%2012$76,500,000139---B2CNYC69$0$76,500,000$1,618,057,777
72
Textura20040.00-0.00-0.00-0.00-0.00-0.00-0.00-0.00-0.00-6.752013TXTR152611â–² 73.33%2013$75,000,000129Oracle20160.663B2BChicago70$0$75,000,000$663,000,000
73
Skull Candy20030.0020070.00-0.00-0.00-0.00-0.00-0.00-0.00-0.00-0.00-SKUL205.75-14.25â–¼ -71.25%2011$188,800,000138Incipio20160.177B2CUtah71$0$188,800,000$177,000,000
74
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