VC-backed IPOs Bounce Back in 2018

Spotify. Dropbox. DocuSign. Big tech IPOs are doing more than making headlines – they are putting 2018 on track to beat 2017’s totals.

According to PitchBook’s Dana Olsen, this year’s offerings will make the year a big one for VC-backed exits. Consider the following points and supporting charts:

“The first quarter of 2017 saw nine VC-backed companies go public, according to PitchBook data. This year, the 1Q number rose to 15. Moving into the second quarter, five companies took the plunge in April both this year and last. But if the early days of May are any indication, 2Q 2018 is likely to pull ahead of 2Q 2017. Three VC-backed companies went public during the first four days of May this year, compared to five that made their debuts during all of last year’s 2Q.”
“By one measure, the size of the offerings is also getting bigger. Median deal size is way up this year, clocking in at $119 million. That’s an increase from $78.8 million in 2017, and it’s higher than any year since at least 2008. Looking at the average value rather than the median, however, the size of VC-backed IPOs has actually ticked down this year after a spike upward in 2017 (which makes sense, considering Snap’s $3.4 billion offering).”