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After recent IPOs like Groupon, Zynga and Facebook, perhaps it’s not surprising that the next generation of technology IPOs is likely to come from enterprise-oriented companies. A new report from the analysts at CB Insights breaks down those companies and their investors, noting that not all of these companies are necessarily headed toward an IPO, but pointing out that those companies do demonstrate where the big money in technology might lie.

The report, which can be found in its entirety online here, looked at 472 private technology companies estimated to be worth $ 100 million or more. Here are a couple of interesting points that caught my eye:

  • Big companies still cost big money: It might be fairly cheap to build a software app and do a startup (as the Lean Startup approach advocates), but growing that business to larger valuations and a potential IPO still costs money. Of the companies the report evaluated, the median funding per company is $ 75.8 million, with an average of $ 84.7 million. 
  • Selling to businesses over consumers pays: 80 percent of the companies in the study target their services at other businesses, as compared to strictly consumer businesses.
  • Mobile and telecom come in behind internet for top sectors: Internet companies dominate the list, making up 229 of the 472 total, but mobile and telecom companies, like those focused on wireless connectivity and broadband services, are doing well too, with 76 companies represented.
  • New York and Massachusetts vie for second place: California still tops the list of where the companies come from, but the two northeast states are essentially tied for second.
  • It takes time to grow a company: Not surprisingly, the companies topping the list weren’t built overnight. One-third of the companies raised their first financing more than seven years ago.

Tech IPO pipeline deals




GigaOM

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