The WSJ published a recent chart of the 49 startups with billion dollar valuations. According to their research, there have never been as many privately held companies with such high valuations ever. The absolute number of these massively valuable companies alone is amazing. Ten years ago, most of them would have gone public by now. But what other insights can we tease from the data about these very special businesses?
First, the Billion Dollar Club (BDC) is nearly evenly split between Consumer and Enterprise companies, as the table below shows. I’ve noted the median dollars raised, the median valuation and the valuation efficiency in the table. The valuation efficiency is the valuation divided by the capital raised. This metric tries to answer the question, how much capital did the startup need to raise to achieve that valuation? This is a somewhat flawed metric[1] but I’m going to use it to compare the relative attractiveness of sectors[2].
Tomasz TonguzMedian annual gross dollar churn was 8%, 7%, 6% and 8% in 2016, 2015, 2014 and 2013
SAAS companies with >$250K median ACV book nearly 25% of their contracts at 3 years or longer
After $10M in ARR, the median growth rate slows to just under 50%
In 2017, website sales amounted to approximately 300 billion British pounds.
In 2018, the U.S. imported aerospace products worth about 53.98 billion U.S. dollars.
Negative Churn and Expansion Revenue
They may forget what you said, but they will never forget how you made them feel.
The median annual contract value (ACV) was $25K, $21K, $21K, $20K in 2016, 2015, 2014 and 2013