Enterprise Software is a favourite sector for several Angel Investors and Seed VC Firms (around 40% of the VC dollars are invested in this sector) , but few people realise how challenging is the exit strategy in the Enterprise Software business.
Consider that just 14 Enterprise Software companies went public in the States in 2018 and the below stats highlight how big an enterprise company should be in order to go public.
Average age of the company: 15 years
$200m Annual Revenues
revenues annual growth rate: 40%
75% GP Margin
average number of employees: 1,000
Total money raised pre-IPO: $300m
Money burn: $200m