The 2019 Tech

IPO Pipeline
286 of the most promising and highly-valued private tech
companies in the United States

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 June 12 - 13, 2019
New York, NY

events.cbinsights.com/future-of-fintech

@cbinsight @cbinsight
Save with early bird pricing until Dec 31, 2018 #FutureFintech
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s s
Contents
6 Welcome remarks

7 Macro trends

19 The 2019 Tech IPO Pipeline

29 Top Tech IPO Pipeline investors

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7 TH A N N U A L T E C H I P O P I P E L I N E R E P O R T

Welcome remarks
This is the 7th annual edition of the CB Insights Tech IPO Pipeline Report. This year’s Tech IPO Pipeline features 286 of the
most promising and highly valued private venture and private equity-backed technology companies in the United States.

Our analysis finds that while tech IPO activity did not see a major spike in 2018, investment to potential candidates
continues to grow significantly. Of note, there has been almost six times more $100M+ private financings than IPOs of US
venture-backed tech companies this year. The continued frothiness in the private markets has minted more than 40 new
US tech unicorns in 2018 YTD.

Of the venture-backed US tech companies that went public this year, we find that the median time between their first
financing and public offering was 10.1 years. Compare that to 2013, when the median time was just 6.9 years.

As always, it is worth remembering that not all (and perhaps few) of these 286 companies will IPO next year. Many have
just crossed the $100M valuation threshold. Others continue to tap into creative sources of capital in the private markets.
And some will get out-executed and may never see a liquidity event.

Still, 2019 is shaping up to be a blockbuster year for tech IPOs. Consider that if Uber, Airbnb, Pinterest, and Slack were to
go public at their rumored IPO valuations, they would all rank among the 10 largest venture-backed tech IPOs since 2012.

Onward to 2019.
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7 TH A N N U A L T E C H I P O P I P E L I N E R E P O R T

First, a look at the market…

1. Tech IPOs continue to take longer
2. No boom in tech IPOs in 2018
3. Big tech M&A rises, but also replaces some would-be IPOs
4. Mega-round mania in 2018
5. The SoftBank effect
6. Private equity funds get active in late-stage buyouts

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The median time between first funding and IPO
for US VC-backed tech companies that went
public in 2013 was

6.9 years
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The median time between first funding and IPO
for US VC-backed tech companies that went
public in 2018 YTD was

10.1 years
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MACRO TRENDS

Companies are raising more funding prior to IPO

Median amount of funding raised prior to tech IPOs by year ($M), 2012 – 2018 YTD (12/14/2018)

$239
$185
$137
$98 $101 $92
$64

2012 2013 2014 2015 2016 2017 2018 YTD

Includes IPOs of US-headquartered VC-backed tech companies on major US exchanges only. 10
MACRO TRENDS

There has been no upswing in tech IPOs in 2018

IPOs of VC-backed US tech companies, 2012 – 2018 YTD (12/14/2018)
33
30 29

19 19
16
12

2012 2013 2014 2015 2016 2017 2018

Includes IPOs of US-headquartered VC-backed tech companies on major US exchanges only. 11

MACRO TRENDS

Will 2019 be the blockbuster year for tech IPOs?

Largest US VC-backed tech IPOs since 2012 vs. potential IPO valuations of Uber, Lyft, Slack,
and Pinterest

Potential 2019 tech IPOs

Largest US VC-backed tech
IPOs since 2012

$120.0B
$104.2B

$31.0B $24.8B
$15.0B $14.2B $12.6B $10.0B $4.5B
Uber Facebook AirBnB Snap Pinterest Twitter Dropbox Slack
$5.4B
Lending Club Zayo Group Holdings

Valuation shown is at time of IPO 12

 MACRO TRENDS

Both tech and non-tech buyers drive billion-dollar

tech M&A in 2018
Tech vs. non-tech buyers of VC-backed US companies for $1B+, 2013 – 2018 YTD (12/14/2018)
2013 2014 2015 2016 2017 2018 YTD
Non-tech
Tech

2x

Excludes billion-dollar VC-backed healthcare M&A 13

MACRO TRENDS

Big M&A replaces some would-be tech IPOs

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MACRO TRENDS

Mega-rounds triumph over tech IPOs in 2018

$100M+ financing rounds to VC-backed tech companies vs. VC-backed tech IPOs, 2012 – 2018
YTD (12/14/2018)
140
$100M+ equity financing
120 rounds to US VC-backed tech
companies
100

80

60

40
US VC-backed tech IPOs
20

0
2012 2013 2014 2015 2016 2017 2018
IPOs include US-headquartered VC-backed tech companies on major US exchanges only 15
MACRO TRENDS

New private tech unicorns significantly outpaced

tech IPOs in 2018
New tech unicorns vs. VC-backed tech IPOs, 2012 – 2018 YTD (12/14/2018)
50
45
New VC-backed US tech
40 unicorns
35
30
25
US VC-backed tech IPOs
20
15
10
5
0
2012 2013 2014 2015 2016 2017 2018
IPOs include US-headquartered VC-backed tech companies on major US exchanges only 16
 MACRO TRENDS

SoftBank has led $100M+ financings to 16 US

companies totaling over $10.8B in 2018 YTD
Financing
Amount: $4B* $1.25B** $1.1B $1B $535M $400M $400M $400M
Firm:

$375M $300M $300M $300M $250M $240M $200M $121M

*SoftBank invested $1B in a convertible note to WeWork in August 2018 and a warrant to pay $3B to buy shares before 9/2019 at $110 per share in November 2018.

**SoftBank invested $1.25B directly in Uber in January 2018. Uber investors and employees also tendered shares to a SoftBank-led consortium worth $8B.
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MACRO TRENDS

Vista Equity leads PE investors getting active in

late-stage private tech buyouts
Investments or M&A of private, VC-backed companies by Vista Equity Another trend in the late-
stage startup market is tech-
Partners, 2012 – 2018 YTD (12/14/2018) focused PE firms willing to
9 acquire majority stakes in
tech companies
contemplating an IPO or exit.
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Remaining to be seen is
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whether PE firms such as
Vista start to cash out
3 investments through stock
market flotations rather than
sales to other PE firms or
larger companies. Vista-
backed Ping Identity has
reportedly hired banks for a
2015 2016 2017 2018 YTD
potential IPO.
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The 2019 Tech IPO
Pipeline

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THE 2018 TECH IPO PIPELINE

Last year’s tech IPO predictions – how they fared

Our 2018 Tech IPO Pipeline identified 355 tech companies that represented the cream of the
crop within VC and private equity portfolios. Here are how our predictions did:

355 tech IPO pipeline companies

50% exited or raised financing in 2018
57 companies exited via IPO or M&A
16 companies went public
120 raised additional financing in 2018
$24B in financing raised
Secondary transactions not included. 20
In 2018, the 286 Tech IPO Pipeline
companies raised:

$30.5 billion
in equity financing

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2019 TECH IPO PIPELINE

A selection of 2019 Tech IPO Pipeline companies

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2019 TECH IPO PIPELINE

Top 5 IPO prospects – Ranked by Mosaic Score

We used our proprietary company rating algorithm, Mosaic, to identify a select group of
companies that are most likely to go public in 2019. The list is below:
Mosaic Momentum Score
Company Description Total funding ($) Select investors
(max 1,000)

Web performance and Pelion Venture Partners,

940 $182M
security services NEA, Venrock

Lightspeed Venture
Cloud data management 870 $292M Partners, Greylock
Partners, Khosla Ventures

Customer experience
870 $255M Sequoia Capital
management software

Horizons Ventures,
Cloud video conferencing 900 $142M Emergence Capital
Partners, Sequoia Capital

Exercise equipment and Tiger Global Management,

860 $1B
media True Ventures, L Catterton
Mosaic was built with a grant from the National Science Foundation. Using non-traditional public signals ranging from customer signings to hiring activity to media 23
sentiment to web traffic and mobile app data, Mosaic scores provide a rigorous, data driven way to understand the health and momentum of private companies. To learn
more about Mosaic, visit https://www.cbinsights.com/company-mosaic.
 2019 TECH IPO PIPELINE

2018 was a record fundraising year for Tech

IPO Pipeline companies
$32,200
$32,000
$31,800
$31,600
$31,400
$31,200
2000 – 2018 YTD (12/14/2018) 300
$31,000
$30,800
$30,600
$30,400
$30,200
$30,000
$29,800
$29,600
$29,400
$29,200
$29,000
$28,800
$28,600
$28,400
$28,200
$28,000
$27,800
$27,600
$27,400
$27,200
$27,000
$26,800
$26,600
$26,400 244
$26,200
$26,000
$25,800
$25,600
$25,400
$25,200
250
$25,000
$24,800
$24,600
$24,400
$24,200
$24,000
$23,800
$23,600
$23,400
$23,200
$23,000
$22,800
214
205 208
$22,600
$22,400
$22,200
$22,000
$21,800
$21,600 191
$21,400
$21,200
$21,000
$20,800
$20,600
$20,400
200
$20,200
$20,000
$19,800
$19,600
$19,400
$19,200
$19,000
$18,800
$18,600
$18,400
$18,200
$18,000 170
$17,800
$17,600
$17,400
$17,200
$17,000
$16,800
$16,600
$16,400
$16,200
$16,000
$15,800
$15,600 138
$15,400
$15,200
$15,000
$14,800
$14,600
$14,400
150

$14,200
$14,000
$13,800
$13,600
$13,400
$13,200
$13,000
$12,800
$12,600
$12,400
$12,200
$12,000
114
$11,800
$11,600
$11,400
$11,200
$11,000
$10,800
$10,600
$10,400
$10,200
$10,000
$9,800
$9,600
100
$9,400
$9,200
$9,000
$8,800
$8,600
$8,400
$8,200
$8,000
$7,800
$7,600
$7,400 63

$3,642
$7,200
$7,000
$6,800
$6,600
$6,400
$6,200 54
$6,000

$2,202
$5,800
$5,600
$5,400
$5,200

$1,312
$5,000
$4,800
$4,600
50

$11,039

$23,052

$19,412

$21,755

$30,571
$4,400
$4,200
$4,000
$3,800
$3,600
$3,400
28
$3,200

$552
$415
$3,000
$2,800
$2,600
$2,400
$2,200
$2,000 11 18
$1,800
$1,600
$1,400
$1,200
$1,000
$800 3 2 2 6 5 4
$600
$400
$200
$- 0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
$M Bar $M Line
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2019 TECH IPO PIPELINE

Mega-rounds to companies in the Tech IPO

Pipeline continue to climb
$100M+ financing rounds to Tech IPO Pipeline companies by year; 2013 – 2018 YTD (12/14/2018)

6
23 50 32 64 97
2013 2014 2015 2016 2017 2018
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2019 TECH IPO PIPELINE

California-based companies dominate the Tech

IPO Pipeline
177

44
19 9 13
5 5 4 4 3 3

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 2019 TECH IPO PIPELINE

60% of Tech IPO Pipeline companies first

raised between 2010 and 2014
1995 1
1996 0
1997 0
1998 1
1999 4
2000 1
2001 1
2002 2
2003 2
2004 2
2005 3
2006 6
2007 11
2008 15
2009 24
2010 23
2011 44
2012 45
2013 38
2014 23
2015 27
2016 5
2017 7
2018 1

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 2019 TECH IPO PIPELINE

45 Tech IPO Pipeline companies first became

unicorns in 2018
2012 3

2013 1

2014 12

2015 20

2016 10

2017 18

2018 45

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Top 2019 Tech IPO
Pipeline Investors

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INVESTOR TRENDS

A16Z, KPCB, GV lead Tech IPO Pipeline investors

Investors ranked by highest number of portfolio companies Andreessen Horowitz moves up two spots to
in the 2019 Tech IPO Pipeline first on the list of investors with the most
investments in Tech IPO Pipeline companies
this year.

Andreessen Horowitz, Kleiner Perkins,

Google Ventures and Sequoia Capital all
remained in the top 5, with Accel moving up
two spots. Investors who made the ranking
after not appearing on the top 20 last year
include Y Combinator and Thrive Capital.

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INVESTOR TRENDS
A16Z, KPCB, GV lead Tech IPO Pipeline investors
Top ranked investors by 2019 Tech IPO Pipeline companies
in the unicorn club
Andreessen Horowitz, Tiger Global, and
Sequoia Capital topped all investors with the
highest number of billion-dollar Tech IPO
Pipeline companies in their portfolio, each
with 20 or more. Sequoia Capital first
invested in 45% of its pipeline companies in
the billion-dollar club at the seed or Series A
stage.
The list is rounded out by a mix of venture
capital firms such as Founders Fund, NEA,
and Spark Capital, and traditionally late-
stage investors such as Wellington
Management, Fidelity Investment, SoftBank,
T. Rowe Price, and Baillie Gifford & Co.
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INVESTOR TRENDS

Top 2019 IPO Pipeline investors – By entry stage

1. Andreessen Horowitz 2. Kleiner Perkins Caufield & Byers

Growth Equity 2 Private Equity 1

Seed Seed 5
8
Series A 5
Series A 10
Series B 9
Series B 9
Series C 9
Series C 7 Series D 5
Series E+ 2 Series E+ 3

2. Google Ventures 4. Sequoia Capital

Seed 6 Seed 5

Series A 12
Series A 9
Series B 7
Series B 6
Series C 5
Series C 11
Series D 4
Series D 5 Series E+ 3

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INVESTOR TRENDS

Top 2019 IPO Pipeline investors – By entry stage

4. Accel 6. SV Angel

Other 2
Seed 17
Seed 3

Series A 14
Series A 12
Series B 9

Series C 6
Series C 1
Series D 2

6. New Enterprise Associates 8. Institutional Venture Partners

Other 1 Growth Equity 2

Seed 5 Series A 2
Series A 11
Series B 6
Series B 6
Series C 7
Series C 4
Series D Series D 5
1
Series E+ 2 Series E+ 5

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 INVESTOR TRENDS

Top 2019 IPO Pipeline investors – By entry stage

9. Tiger Global Management 10. Goldman Sachs

Growth Equity 1 Growth Equity 1

Other 2 Series A 1
Series A 4
Series B 3
Series B 4
Series C 4
Series C 3
Series D Series D 8
3
Series E+ 9 Series E+ 7

11. Y Combinator 11. ICONIQ Capital

Growth Equity 1
Seed 22
Other 1
Private Equity 1
Series B 1 Series B 2
Series C 3
Series D 11
Series C 1
Series E+ 4

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 INVESTOR TRENDS

Top 2019 IPO Pipeline investors – By entry stage

13. Lightspeed Venture Partners 14. Founders Fund

Private Equity 1 Seed 4

Seed 3 Series A 4

Series A 7 Series B 7

Series B 7 Series C 5

Series C 4 Series D 1

14. Battery Ventures 16. Wellington Management

Growth Equity 1 Other 1

Seed 2
Series B 2
Series A 5
Series B 5 Series C 1
Series C 4
Series D 8
Series D 3
Series E+ 1 Series E+ 8

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 INVESTOR TRENDS

Top 2019 IPO Pipeline investors – By entry stage

16. General Catalyst 18. Thrive Capital

Growth Equity 1 Seed 6

Seed 4 Series A 4

Series A 7 Series B 2

Series B 5 Series C 6

Series C 3 Series E+ 1

18. Khosla Ventures

Seed 5

Series A 5

Series B 6

Series C 3

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