Tomasz Tunguz Blog · 2013-11-18
· 4581d
Capital Requirements and Burn Rates for VC-Backed Tech IPOs
Analysis of 2013 VC-backed tech IPOs reveals median cash burn of $33M and average of $76M before going public. Companies typically raised $65M (median) across four funding rounds and maintained 9-15 months of runway in years 4-6. The typical path to IPO takes seven years with burn rates increasing substantially in pre-IPO years.
Metrics in this report
Annual Burn Rate Year 5
25$M
typical
Pre-IPO stage
Annual Burn Rate Year 6
40$M
typical
Pre-IPO stage
Annual Burn Rate Years 1-4
5-10$M
range
Pre-IPO stage
Balance Sheet Cash at IPO
32$M
median
2013 VC-backed tech IPOs
Balance Sheet Cash at IPO
43$M
average
2013 VC-backed tech IPOs
Cash Runway
1.1years
average
2013 VC-backed tech IPOs across full lifecycle
Cash Runway
9-15months
average
Years 4-6 pre-IPO
Pre-IPO Cash Burn
33$M
median
2013 VC-backed tech IPOs
Pre-IPO Cash Burn
76$M
average
2013 VC-backed tech IPOs
Time to IPO
7years
typical
VC-backed tech companies
Total Capital Raised Before IPO
65$M
median
2013 VC-backed tech IPOs
Total Capital Raised Before IPO
119$M
average
2013 VC-backed tech IPOs