Its already the month of May and theres just 7 months left for those SaaS bellwethers and market disruptors who have toiled, pivoted, innovated, scaled like hell, raised a ton of money and earned mythical creature status since their inception, for the day when the fabled Nasdaq bell rings. (what it sounds like in my head)
We bet our bottom Bitcoins that these 5 SaaS companies, in whats left of 2015, will be sitting in the exit aisle on the plane when flying to New York. If they spoke French, their favourite word would be Sortie. Their favourite album by Rush would be Exit…Stage Left. OK, OK enough lame exit jokes. Lets get on with it.
Heres SaaScribe’s tips for 5 SaaS Exits coming in 2015.
“Houston, we have a problem. Box beat us to IPO.” “Oh no we don’t. We have a shit ton more users and cash in the bank, have acquired 20 companies and we’re a Decacorn.” (Cue Mad laughter) Drew Houstons possible response to anyone on Jan 23rd 2015, the day Box went public. Nonetheless, despite totally made up conversations that may, or most likely never happened, lets look at the Dropbox exit facts:
- Founded: 2007
- Amount Raised to date: $1.1 Billion in 6 rounds
- Acquisitions to date: 20. We can name Carousel off the top of our heads without researching. The others? Meh.
- Hiring of Execs with Public Experience: (Tick) Dropbox Hires Former Motorola Mobility Exec Vanessa Wittman As CFO – Date: 11th February 2015
- Revenue: Dropbox rumoured revenue estimate for 2014 were between $300-$400 Million. As Dropbox is not yet a public company we don’t have visibility on actuals.
- Whats Left other than an Exit?: With $850 million raised last year both through equity and debt, theres no rush and Drew Houston’s (under) statement they have a ‘full tank’ means they could stay in the private market for a long long time yet. But, the expectation is the IPO will come this year.
Whilst I’m writing this I glance up at the news and see that Docusign, the SaaS company that is fighting a war against paper and people stuck in the Fax Age, just raised a FAT series F round of $233 Million, giving it a $3 Billion dollar valuation, having now raised $463.1 million. This potentially puts the Kibosh on the theory they will go public in 2015. But with Keith Krach viewing an IPO as ‘Just a financial event‘, with such whimsical views on exits, and with a ton of financial events under their belts, then its still a strong option. I mean, how many SaaS companies, non saas even, goes to Series G? (Damn You Mulesoft) Well, we’ve got the feeling that its not going to be Docusign.
- Founded: 2003
- Amount Raised to Date: $463.1 Million in 13 Rounds from 36 Investors
- Acquisitions: 2 – Cartavi and ARX
- Hiring of Execs with Public Experience: Look no further than their CEO Keith Krach, who was Co-Founder at Ariba, which he took public and left just before the dotcom crash, at Peak market cap of $34 Billion!
- Revenue: Not Disclosed but north of $100 Million ARR Fo Shizzle.
- Whats left?: The SaaS Pyschics and Mediums are not seeing a Series G in the room. But rather they are seeing letters I.P and O.
Salesforce are already public I hear you cry! Their ticker is CRM. Yes, Yes, Yes. We’re not just talking about the public sort of Exits on this list. We’re speculating and chancing that there’s some truth in those rumours that either the Prince of Darkness (Larry Ellison) or Satya ‘Nutella’ Nadella (we didn’t make that nickname up) are courting Marc ‘The SaaS Father’ Benioff (we made that nickname up) for his CRM/Analytics software company and possible succession in the case of Oracle. Larry Prince of Darkness is current 2 to1 odds on favourite. Could a deal be done before summers out. Im off to the bookies. (Will Salesforce look to start turning a profit before then?)
Jeff Lawson’s Disruptive Web Services company has been blazing a trail on the classically slow moving Telecoms Sector with Twilio’s API based platform. Along the way, Twilio has been calling traditional Telecoms Sector names such as Messy, Old, Living in the past and rubbing Telecoms face in the future of communications. Also Jeff has been flaunting his sexy customers such as Uber, AirBnB, Box and then up/cross selling them with over 17 different products at last count. C’mon Jeff. Take it easy on the Telco’s!
- Founded: 2007
- Amount Raised to Date: $203.7 Million in 6 Rounds from 16 Investors
- Acquisitions: First Acquisition this year when Twilio bought Authy in February 2015.
- Hiring of Execs with Public Experience: Karyn Smith, General Counsel helped take Zynga through its IPO. Still More work to be done.
- Revenue: Twilio joined the Unicorn Club in 2014, announcing it hit the $100 Million run rate and is adding $1 Million ARR every 7 days!!
- Whats left?: Now they’ve made their first acquisition, have they got the buying bug? Or maybe one of those ancient Telcos might take out the threat? Nah, probably the IPO we reckon.
The Australian SaaS company behind, Confluence, HipChat (Possibly Less HipChat since the Slack attack?) and Jira, hired a CFO, Erik Bardman, with Public Company Experience in early 2015. We call that a tell. Atlassian are one of the breed of SaaS Companies that has a product that sells itself. Like, no Sales staff. Really. Co-Founders Mike Cannon-Brookes and Scott Farquhar built it, and the people came. If we were playing IPO Poker. We would go all in on Atlassian.
- Here’s the Atlassian facts:
- Founded: 2002
- Amount Raised to Date: $210 Million in 2 Rounds from 3 Investors
- Acquisitions: 7 acquisitions
- Hiring of Execs with Public Experience: New CFO Erik Bardman announced in Feb 2015
- Revenue: A Banner year last year with 44% growth and $215 Million. Cha Ching. Cha Ching.
- Whats left?: IPO. IPO. IPO
by Alex Theuma @alextheuma