Monday, January 09, 2012

What is the performance of the average US successful start-up?

TechCrunch's CrunchBase, did a new analysis of all the start-ups exits. It listed that the average successful company has raised $25.3 million, and sold for $196.8 million, for investor profits of 676% (if you assume the investors own 100% of the company, which they normally don’t).

Ont he other hand, IPO-bound companies generated lower percentage returns, but made a lot more money per exit. The average one raised $580.3 million while private, then went public with a market cap of $2.3 billion on its first day of public trading for 303% profit on investment (while investors probably aren’t selling all their stock on the first day, it is just one way to measure IPO exits).

Source: http://techcrunch.com/2012/01/03/crunchbaseexits/

Louis Rhéaume
Infocom Intelligence
louis@infocomintelligence.com
Twitter: @InfocomAnalysis

No comments: