Tag Archives: 600 startups

Two new British startup cap. tables: Autonomy and Bicycle

I recently published an updated version of a database of capitalization tables of 600 (former) startups. I obtain the data most of the time from the IPO prospectus of the company (that is the document the company publishes when it is listed on a public stock exchange, and in general Nasdaq.

These documents are an amazing source of information of all the business components of the companies even if I focus only on the shareholding and funding history. They are sometimes a little frustrating though as they do not cover the full history of the company, but only 3 to 5 years in the past so it is not simple to get the founders’ data for example.
Some countries do however provide access to the full company data, often for a fee like in France. A few cantons in Switzerland (Basel, Zurich) and the United Kingdom provide it for free and this is just great.

I have done some research for Revolut and Graphcore recently. Today, I revisited the data I had built for two British companies: Autonomy founded in 1996 and had gone public on Easdaq in 1998 and Bicycle Therapeutics, a biotech company with links to EPFL (Lausanne, Switzerland) founded in 2009 and public since July 2019.

The IPO documents did not provide enough for me about the founders and early rounds. So here are my new tables:

Autonomy

Bicycle from the IPO data

Bicycle from the UK register data, the updated cap. table, the funding rounds and its growth over time:

The funding rounds


The growth of revenues and jobs

Data about equity of 600 startups – comments (7)

A final post (for now) about the data about 600 (former) startups. So what have they become today in April 2020?

First a quick point of caution: I counted some companies twice, because I had looked at their equity strutcure at different points in time: Alibaba had two IPOs in 2007 in HK and 2014 in the USA, Esperion had 2 filings in 2000 and 2013. This is not a big deal, except if you count Alibaba’s value twice!

So out of the about 600 former startups, I found that
– 20 were still private (they may have recently filed for IPOs though)
– 12 were private again after an IPO
– 13 had stopped their activity (often through bankruptcy)
– 225 had been acquired or merged with another company (Merger and acquisitions – M&As)
– 331 were still public.

So let us have a closer look at M&As and public companies:

On the M&A side, the main acquisition value comes from biotech, with a $5B average value whereas software or internet is a little les below $3B.

On the public side, I will let you discover depending on your interest about, given the field, the number of companies, employees, cumulative market capitalizations, sales, profits, then age of companies and current average price to sales (PS), price to earnings (PE) and an interesting personal metrics, price ot employees in $M (Pemp).

Data about equity of 600 startups – comments (6)

Sixth post of comments on the 600 startup data. Today, it’s about the valuation of startups.

I had touched the topic on page 615 of the pdf. Here is the data again.

Be aware that these numbers are not typical of traditionnal companies. They show that startups going public are of a speculative nature, with a promise of very high-growth in the future. The multiples are very high and in the case of earnings, in fact most startups do not make a profit at IPO – about one out five!

Interestingly Silicon Valley does not have the highest multiples, but Europe is behing the USA.

The tables give the PS ratio (price to sales – ratio between valuation and sales) and PE ratio (price to earnings – ratio between valuation and profits) and the number of startups taken into account each time. The following curves show the PS values by 5-year periods and by year.

If you are lost, here are slides I have used in the past and if you want to get the excel file, send me an email.

Data about equity of 600 startups – comments (5)

Fifth post of comments on the 600 startup data. Today, it’s about the ownership of non-founding CEOs (compared to the founders).

I noticed a few months ago that in a majority of cases, the CEO was a founder. This was a surprise. The data confirms this: there are a total of 229 startups with a non-founding CEO out of 600 (38%). Again, fewer in the digital domain, and more in the health-related fields.

As you may see in my initial post, these CEOS have on average a 3% ownership (median value is 2.7%).

Is all this useful in practice? The median value of the ratio between the CEO & founders’s ownership is 0,5 (the average value is 1 because there are big outliers). Does this mean that if founders want to hire a CEO at foundation, he should have about 33% of the company, and at series A about 15% if you have read all my posts before!

Here is a more granular illustration.

The next image shows the founders’ ownership on the horizontal axis vs. the CEO’s on the vertical axis (with a zoom on the right).

A final illustration as food for thought, the founders’ ownership in the digital and health-related fields, relatively to the presence of a non-founding CEO or not. (Note that the vertical axis does not have the same scale for the two domains).

Data about equity of 600 startups – comments (4)

Fourth post of comments on the 600 startup data. Today, it’s about how equity is shared following my post yesterday which focused on founders’ equity.

A quick extract from the data gives the following average and median values:

So as a simple model, it is 10% for (2-3) founders, 20% for employees, 50% for private investors (VCs and BAs – business angels) and about 20% for public investors at IPO.

In addition the 20% for employees are made of 8% of common shares, 7% of granted options and 5% of available options.

Finally non-founding CEOs have 3%, VPs 0.8% and CFOs 0.6%.

Independant board members have as a group 0.4%, they are in general 2 to 3, so it is about 0.2% per director.

If you want to dig in the topic, you may be interested in the following slides:

Data about equity of 600 startups – comments (3)

Third post of comments on the 600 startup data. As I am not sure how many posts I will write about this, I created a tag #600startups.

I looked at the founders’ age yesterday; today it is about their ownership over time. Founders keep 12.5% of the company at IPO, a little more in IT (about 16%), less in health (7-8%). The median value is 8.5%.

The series A curve is misleading! Founders’ ownership is at IPO but the Series A ownership is at the time of the round itself, not at the time of the IPO…

Moreover, I built a simple model which is the following: the Series A ownerhsip is based on the ratio between their shares and the sum of these shares and the founders shares increased by 20% (this to take into account future hires): as a short illustration, if Series A took 40% in the first round, founders had 50% as 10% was reserved for future hires (i. e. 20% of the founders’ stake).

It’s also worth noticing the series A are pretty big, about $9M on average (median value is $4.5M), and possibly in several tranches (as it is quite common in biotech).

Data about equity of 600 startups – comments (2)

Second post of comments on (updated) data on 600 (former) startups, about (what I think) are interesting or intriguing results.

After venture capital in the first post, here are elements about founders.

The 600 startups gave me data about 1016 founders, al though there is an average of 2.3 founders per startup. I did not have the age of all of them, neither their role or ownership. The average age is 37.9, the median is 36. (This is age at foundation, I added this after a comment I received on April 9, 2020).

The following figures show some striking results about the age related to fields: founders are much older in the health-related fields, much younger in digital technnologies. It is more than 45 in biotech and 43 in medtech in comparison to 33 in software and Internet.

Data about equity of 600 startups – comments (1)

As a follow-up to my recent post on (updated) data on 600 (former) startups, here is a first post about (what I think) are interesting or intriguing results.

Without doing too much self-promotion, let me add that I have in the past already dealt with the topic as I mentionin the document or through the following illustration:

My first comment is that the differences linked to fields or geographies are not that big, whereas data evolved more over time (fifty years). Amounts of venture capital, years to IPO, sales, profits, employees are not that different for example except in biotech maybe, for sales and employees at least.

One important note: in my list of 600 companies, only 15 did not have venture capital (or at least private investors). Is there a bias here? I am not sure, but I could be wrong.

These “comment” posts will be short and I finish this one with a look at Series A, the 1st investment round. The amounts are substantial, $8M on average. I did a new analysis, i.e. to find out how much VCs take at this stage and on average, it’s … 47%. A little less in IT, a little more in healthcare, a little less in Silicon Valley, a little more in Boston.

If I bring it back to the percentage per million, that gives 22%, I let you think about this astonishing result … but we must also look at the median values, because all this is not gaussian as I have often say, but follows a power law. Median values are $4.5M for Series A in exchange for 45.5% and 10% for $M.

Updated data in equity of 600 (former) startups

The Covid19 virus has an indirect effect, we have more time at home and in front of computers. So I updated my data in startup equity from 600 companies for which information was available, mostly because they had filed to go public. Here is the full list of individual data.

If you cannot visualize the document on scribd, here is a direct link to the pdf entitled Equity_in_600_Startups-Lebret-April2020.

At the end of this 600+-page document, you’ll find some statistics, here they are again. I will probably come back to some results I find interesting not to say intriguing. Enjoy an react!

Some addtional comments in later posts:
1- About venture capital: on April 7 comments 1.
2- About the age of founders: on April 8 comments 2.
3- About the equity of founders: on April 9 comments 3.
4- How is equity shares: on April 10, comments 4.
5- About the equity of non-founding CEOS: on April 11, comments 5.
6- About valuation of startups: on April 12, comments 6.
7- What have they become: on April 16, comments 7.

Basic data about startups (funding, sales, profits, employees at IPO and years to IPO) by fields, geographies and periods of time.

Data about founders (age, ownership and nb. by startups) and other stakeholders by fields, geographies and periods of time.

Data about ownership of non-founding CEOs, VPs, CXOs, board members by fields, geographies and periods of time.

New data about ownership of series A investors by fields, geographies and periods of time.