The 2014 IPO pipeline includes 590 private technology companies valued at $100m or over. These businesses have raised a total $55.35bn across 2,800 funding rounds and the average amount raised was $101m, up from $85m in 2012.
The report showed that the number of IPO pipeline companies that were valued at over $1bn in funding round increased significantly compared to last year, surging 67 per cent to 26.
Perkins Caufield & Byers has the most IPO pipeline companies, followed by New Enterprise Associates and Accel Partners. There are currently 599 investors including venture capital firms, angel investors and corporations with at least two potential IPO candidates for 2014, according to the report.
The internet sector accounts for more than half of the pipeline after seeing the number of IPO candidates soar 39 per cent to 320. The e-commerce segment is in the lead with 51 companies followed by the ad tech and business analytics performance management industries with 43 and 22 IPO candidates respectively.
So far this year, 48 per cent of the 472 tech companies included in last year’s report have exited or raised additional funding. A total of 57 companies have exited in IPO and M&A deals with a combined value of 44bn, while 171 companies have raised an additional $5bn.
The 21 floated companies took 7.4 years on average to progress to IPO from first funding and the average amount raised was $194m.
“While capital efficiency is the mantra of tech investors, positioning a company to go public requires significant capital,” said CB.
“And so, it’s not surprising that another 171 companies on last year’s list have gone on to raise additional financing.”
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