2015 Software Startup IPOs and M&A - What Does the Data Imply for 2016?

The article analyzes 2015 software M&A and IPO activity, finding a 40% decline in disclosed M&A values and minimal IPO activity compared to 2014, driven by a 200% valuation premium in private markets (10-15x forward revenue) versus public markets (5.3x). The author forecasts that private valuations will realign with public multiples in 2016, triggering a wave of acquisitions and IPOs, particularly for companies demonstrating growth combined with a path to profitability.