The Life of a Modern Tech Start-Up

January 16, 2012 in Daily Bulletin

CrunchBase advertises itself as a “free database of technology companies, people, and investors.” Going through the data the writers at TechCrunch looked at the life of successful start-up companies in the past decade or so and found that:

  • The average successful company raises $25.3 million and sells for $196.8 million, for a 676% investor return
  • Companies that have an IPO instead of selling raise an average of $580.3 million and go public with a market capitalization of $2.3 billion for a first-day return of 303%
  • Older companies aren’t necessarily worth more – if you get an early offer it might be worth it to sell

To see some neat graphs and learn more about the likely fate of your potentially successful start-up click here.

Source: TechCrunch