www.cbinsights.

com

The 2014 Tech IPO

Pipeline Report
Analyzing tech’s most promising and valuable private companies
CB Insights is a National Science Foundation-backed
company that uses data to provide VCs, corporate
strategy and M&A groups and investment bankers with
intelligence on emerging companies and disruptive
technology trends.

www.cbinsights.com

2
This year’s Tech IPO Pipeline is powered by CB
Insights’ proprietary Company Mosaic ratings.
Learn more about Company Mosaic.

3
Our 2013 Tech IPO Pipeline identified 472 tech companies that represented the cream of the
crop within VC and private equity portfolios. Here is how our predictions did.

The remaining 52% remain active (aka alive).

4
There are 590 technology companies in the United States with valuations, real or rumored,
of greater than $100M who are demonstrating significant momentum based on our private
company Mosaic ratings. Below is a breakdown of trends observed across these firms:

Financing raised to-date by Tech IPO Pipeline Companies on the Tech IPO Pipeline valued
companies at $1B or over.

Average amount raised by 2014 pipeline Jump in the number of Tech IPO Pipeline
companies, a 19% jump from last year’s list companies based in NY from last year

Has the most 2014 Tech IPO Pipeline The number of Tech IPO Pipeline companies
companies in its portfolio in California. Silicon Valley dominates

Tops the list of investors based on their ability Investors (angels, VCs, corporations) with 2 or
to invest early in IPO Pipeline companies more companies in the Tech IPO Pipeline

5
To-date, the 590 companies in the pipeline have raised a whopping $55.35B across more
than 2,800 financing deals. The prevalence of cash-rich corporate investors and financial
services firms (including hedge funds) has made capital seemingly plentiful for tomorrow’s
tech high flyers.

6
The average amount raised by companies on the Tech IPO Pipeline has climbed significantly
from last year and now stands at $101M. The median amount raised stands at $73M, a
slight drop from last year’s $76M median.

7
Internet companies make up over half of the 2014 Tech IPO Pipeline, followed by mobile &
telecom companies. And both have seen significant growth in their share of the pipeline.
There are currently 39% more Internet companies and 22% more mobile companies on the
2014 Tech IPO Pipeline than last year’s list.

8
Peeling back median amounts by sector reveals that Internet and software companies
generally raise the least versus other sectors. The mobile & telecom sector sees the highest
funding medians because of capital-intensive infrastructure & telecom service firms.

9
Ad Tech and eCommerce have the most Internet companies currently in the pipeline,
followed by the Business Intelligence & Analytics industry. The overall picture within the
Internet sector shows a great deal of diversity at the industry level.

10
The number of $100M+ financing rounds to the Tech IPO Pipeline has nearly doubled since
last year. The growth has been spurred primarily by corporate and private equity investors.

11
With massive financing and secondary market rounds becoming more frequent, so have
billion dollar plus valuations. The number of Tech IPO Pipeline companies that raised
financing with a real or rumored valuation of $1B+ in 2013 jumped 67% versus 2012.

*Rounds by exited companies with a $1B+ valuation are not included in the chart.

12
There are currently 26 U.S. private companies on the 2014 Tech IPO Pipeline that have
raised a financing round at a real or rumored valuation of $1B or more

Company Select Investors Description

Sequoia Capital, Greylock Online platform pairing

Partners, Andreessen travelers and rentals
Horowitz

Insight Venture Partners, Enterprise-grade mobile

Accel Partners device management

Khosla Ventures, First Round Real-time online

Capital, Venrock advertising platform

Polaris Partners, True Commercial arm of

Ventures, Radar Partners WordPress blog platform

Draper Fisher Jurvetson, US Online file sharing and

Venture Partners, Scale cloud content
Venture Partners management

13
Company Select Investors Description
Greylock Partners, Passport Digital coupon provider
Capital

Foundation Capital, Oak Cloud commerce-as-a-

Investment Partners service

Sequoia Capital, Accel

Cloud storage provider
Partners

Morgenthaler Ventures, Cloud-based note-taking

Sequoia Capital tool

Insight Venture Partners, Online sports retailer

Alibaba, Andreessen Horowitz

Matrix Partners, General Online flash sales

Atlantic website

14
Company Select Investors Description

Oak Investment Partners, Enterprise mobility,

Draper Fisher Jurvetson, New security and
Enterprise Associates management

US Venture Partners, Wearable cameras and

Steamboat Ventures, Foxconn accessories

Khosla Ventures, Sequoia Wearable technology and

Capital, Andreessen Horowitz audio devices

Norwest Venture Partners, Peer to peer lending

Morgenthaler Ventures, company
Canaan Partners
Union Square Ventures, Cross-platform NoSQL
Flybridge Capital Partners database system

15
Bessemer Venture Partners, Virtual scrapbooking
FirstMark Capital, Andreessen website
Horowitz

General Electric, EMC, Enterprise Platform-as-

VMWare as-Service

Greylock Partners, Sutter Hill Enterprise flash storage

Ventures, Redpoint Ventures provider

Lightspeed Venture Partners, Mobile image-messaging

Benchmark Capital sharing service

Founders Fund, Draper Fisher Commercial space

Jurvetson transport manufacturer

16
Company Select Investors Description

Software analytic
Founders Fund
services and intelligence

Khosla Ventures, Sequoia

Mobile payment system
Capital, Andreessen Horowitz

Sequoia Capital, Khosla Online survey and

Ventures, Kleiner Perkins questionnaire tools
Caufield & Byers

First Round Capital, Lowercase Ride-on-demand

Capital, Benchmark Capital, smartphone app
Menlo Ventures

Global youth digital

21st Century Fox media company

17
Get the full list in Excel in the CB Insights
DataStore.
Just visit:
http://www.cbinsights.com/datastore/product/
tech-ipo-pipeline-companies/

18
Kleiner Perkins tops the list of venture firms with the most Tech IPO Pipeline companies in
their portfolios, followed by New Enterprise Associates and Accel Partners. After some exits
in 2013, Intel Capital and Sequoia Capital fall slightly to the number 4 and 5 positions,
respectively. Of note, there are a total of 599 investors (VCs, angels, corporations) with at
least two companies in the 2014 Tech IPO Pipeline.

19
The following charts illustrate when each of the top 20 investors first invested in a Tech IPO
Pipeline company. As shown below, Accel most frequently first invested at the Series A stage,
while Intel Capital and KPCB most often invested at the mid-stage first (Series B/Series C).
21
22
23
24
First Round Capital and Benchmark Capital top the list of Tech IPO Pipeline investors when
judged by their ability to get into Tech IPO Pipeline companies early (their Selection
Aptitude). At the bottom are DAG, Institutional Venture Partners and Goldman Sachs in line
with their investment focus as expansion capital providers.

*Selection Aptitude: A measure of dealflow quality and selection prowess for each investor,
highlighting an investor’s ability to source and select high quality investments.

25
Yes, it is pretty darn hard to build a big tech company. Just over half of companies on the
2014 Tech IPO Pipeline first received financing in 2007 or earlier.

26
The number of Tech IPO Pipeline companies in California has jumped from 222 a year ago to
308 for 2014. As a testament to its growth as a tech venture hub, New York saw its number
of total pipeline companies jump just under 50% from last year’s list (41).

27
Forget sector diversity. Focused primarily on Ad Tech, eCommerce and media, 84% of NY’s
pipeline companies are in the Internet sector. California and Massachusetts both show
sector diversity across Internet, mobile, computer hardware and software companies.

28
29
 Just click this button (yes, it’s that easy)

It’s free!

@cbinsights
Follow us on Twitter – we’d love to hear from you info@cbinsights.com
If you’re a data junkie, you can also sign up for our newsletter here (212) 292-3148

30
www.cbinsights.com

31
Get the full list in Excel in the CB Insights
DataStore.
Just visit:
http://www.cbinsights.com/datastore/product/
tech-ipo-pipeline-companies/

32