What it Takes Part 1: A Quantitative Deep Dive in Last 100 $1B+ Tech Exits 

Objective

This analysis aims to identify key trends from the last 100 billion-dollar exits in the United States, encompassing both IPOs and M&A events. It is designed for founders, venture capitalists, and other stakeholders who are interested in understanding the factors driving successful venture-backed exits. 

By focusing on software companies and venture-funded businesses—excluding SPACs and biotech—this report highlights critical patterns in IPO valuations, founder characteristics, and sector performance, offering a detailed look at the factors shaping the venture ecosystem. 

While the findings offer a retrospective view of past successes, it is important to recognize that the IPO and M&A deals of yesterday are not necessarily indicative of the trends shaping tomorrow.

Scope

This report analyzes the last 100 billion-dollar exits, defined as venture-funded companies in the United States achieving a valuation of $1 billion or more through IPOs or M&A events. Key inclusion criteria are:

• Venture-funded: Companies that received venture capital backing.
• Sector Focus: Primarily software companies, with some representation from adjacent sectors like DTC.
• Exclusions: Biotech companies, SPAC-driven exits, and mega-cap entities outside the venture funding domain.

Data was sourced primarily from Crunchbase, focusing on recent billion-dollar exits without normalizing for factors like inflation. The dataset is a snapshot of the evolving dynamics of high-profile exits in the venture ecosystem.

Methodology

The data for this analysis was collected through manual research using Crunchbase, as the primary source, with cross-referencing via various new outlets, company websites, and Linkedin to validate key metrics. The analysis was conducted using Excel to explore trends and correlations across variables such as IPO valuation, years to exit, founder characteristics, and sector-specific performance. 

While the dataset provides valuable insights, it is important to note that not all data in Crunchbase/Web is consistently accurate, representing a potential limitation to the analysis.

Analysis

This comprehensive analysis examines the trends, valuations, and dynamics of the last 100 tech IPOs and M&A exits, highlighting key sectors, market shifts, and founder insights.

Valuations

• Highest valuation: Rivian at $66.50B
• Lowest valuation(s): Several companies at $1.00B (e.g., Teads, Nom Nom, Altiostar Networks, PrettyLitter)
• Average valuation: ~$4.8B

Market Concentration

• The top 10 deals accounted for 42.5% of total deal value ($204.6B out of $481.4B)
• Rivian's $66.5B IPO alone represents about 13.8% of total deal value
• There was a 66x difference between the smallest exit ($1B) and the largest exit ($66.5B).

Average Deal Size

• IPOs have the highest average at $6.36B per deal
• Direct listings average $5.55B per deal
• M&A transactions average $2.14B per deal

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Number of Exits by Year and Deal Type

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2021: A Year of Peak Activity

The year 2021 marked a historic high for tech deals, with an astounding 69 transactions. The tech deal activity was exceptionally high due to a confluence of favorable market conditions. Low interest rates, abundant liquidity, and strong investor confidence drove record-breaking valuations and deal activity. This included 50 IPOs, 15 M&As, and 4 direct listings, solidifying 2021 as a banner year for the industry. The frenetic pace of activity reflected booming valuations, high investor confidence, and an appetite for innovation.

2022-2023: A Sharp Market Decline

Following the peak of 2021, the market entered a stark downturn. The sharp decline in 2022 can be attributed to a dramatic shift in macroeconomic conditions. Rising interest rates, persistent inflation, geopolitical uncertainties (such as the war in Ukraine), and fears of a global recession created a risk-averse investment environment. Public market volatility further eroded IPO opportunities, and investors became more cautious, prioritizing profitability over growth. This led to a slowdown in venture funding, reduced valuations, and fewer exits, with M&A activity becoming the dominant exit route for many startups. In 2022, total deals plummeted to just six—comprising one IPO and five M&A transactions. The trend continued into 2023, which saw a modest improvement with eight deals (three IPOs and five M&As). Notably, direct listings, which had a moment in 2021, disappeared entirely from the market.

2024-Beyond: Signs of a Market Rebound

The tide appears to be turned in 2024, with deal activity rising to 17 transactions. This includes six IPOs and 11 M&A deals, marking a significant improvement over the previous two years. While still far from the unprecedented highs of 2021, the increase suggests renewed investor interest and a recovering market. The gradual recovery of IPO activity in 2024 underscores the importance of timing and readiness, as public market windows remain narrow. With M&A emerging as the dominant exit path, founders should prioritize building operational efficiency and strategic relationships with potential acquirers. The absence of direct listings since 2021 suggests a waning appetite for alternative public market strategies, making traditional IPOs and acquisitions the most viable routes to liquidity.

What sectors were the most dominant?

Market Concentration: The top 6 sectors account for 66% of all $1B+ exits, showing significant concentration in specific areas:

• SaaS Platforms (16%)
• Finance & FinTech (14%)
• Commerce/Retail Marketplaces (11%)
• Healthcare/MedTech (10%)
• Data Cloud & IT Management (8%)
• Marketing & Customer Engagement (7%)
• Lowest Sector(s): Several Industries at 1% ( e.g. Business Process Outsourcing, Social Media & Community & Entertainment & Gaming)

Consumer vs. Enterprise

The data paints a clear picture of where the most lucrative opportunities lie: enterprise-focused sectors dominate, accounting for a remarkable 71% of $1B+ exits. With 71 total exits, sectors such as SaaS Platforms (16), Finance & FinTech (14), and Data Cloud & IT Management (8) are leading the charge. Other notable contributors include Healthcare/MedTech & Life Sciences (10), Marketing & Customer Engagement (7), and Cybersecurity Risk & Compliance (5). 

In contrast, consumer-focused sectors represent just 20% of exits, with only 20 total $1B+ outcomes. Commerce, Retail, and Consumer Marketplaces take the largest slice with 11 exits, while sectors like Consumer Packaged Goods & Lifestyle (5), Entertainment & Gaming (1), Social Media & Community (1), and, Education & Learning Platforms (2). 

Sector IPO Total Valuations

• Robotics, Automotive & Hardware leads with $78.6B
• Finance & FinTech follows with $72.9B
• SaaS Platforms ranks third with $48.6B

Sector Direct Listings Total Valuations

• SaaS Platforms ($13.8B)
• Commerce Retail & Consumer Marketplaces ($8.4B)
• These represent a relatively small portion of overall exits

Sector M&A Total Valuations

• Marketing & Customer Engagement shows the highest M&A value at $13B
• Healthcare MedTech & Life Sciences follows at $10.4B
• Consumer Packaged Goods & Lifestyle also shows significant activity at $10B

Some sectors stand out for their versatility across multiple exit types. For example, SaaS Platforms and Commerce Retail & Consumer Marketplaces demonstrate activity in IPOs, M&A, and direct listings. On the other hand, sectors like Education & Learning Platforms remain specialized, showing activity exclusively in IPOs.

Traditional tech-heavy categories like Developer Tools and Data Cloud maintain their stronghold with robust IPO activity, reaffirming their role as the backbone of enterprise infrastructure. Interestingly, enterprise-focused sectors generally command higher valuations, reflecting their recurring revenue streams and scalability. Meanwhile, consumer-facing industries display more varied exit strategies, balancing IPOs, M&A, and direct listings to optimize outcomes.

Locations

California's $302B in exits reinforces its position as the dominant tech hub, driven by Silicon Valley. This is nearly one-third of the total exit value in the dataset. 

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Which cities produce the highest number of exits by sector? 

Note: If multiple cities have the same number, they’re each included. 

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How much Funding did it take to Achieve a Billion Dollar Exit?

Disclaimer/Note: As we step into this part of the data, the “Amount Raised” data much of it is imprecise due to self-reported data, undisclosed or delayed updates, and reliance on public announcements. Only 43 companies out of 100 have the full amount raised data on Crunchbase. The remaining 57 companies have financing rounds reported but are missing actual amount raised.

Overall Fundraising Statistics

• Total amount raised across all companies: $49.49 billion
• Average raised per company: $490 million
• Median amount raised: $230 million

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Value Creation Efficiency of last 100 $1B+ Exits 

Of the full 100 company dataset:  

• Average Exit to Amount Raised Ratio: 24:1, meaning on average these companies created $24 of value for every $1 raised.

• Highest ratio: BodyArmor at 156:1, reportedly raising $36M to be acquired by Coca-Cola @ $5.6B. 

Of the 43 companies with full data available: 

• The average deal size to amount raised ratio down to 13:1
• Highest Ratio for full available amount raised data: some text
  • Doximity at 56:1
  • Recorded Future at 34:1
  • Braze at 33:1
  • Freshworks at 25:1
• Lowest ratio(s): Several companies at 3:1 (e.g., Innovium, Outbrain, Own Company, and PROCEPT BioRobotics)

Of the full 100 companies dataset broken up by Sectors: 

• Highest Ratio for full available amount raised data:
  • Consumer Packaged Goods & Lifestyle at 62:1
  • Finance & FinTech at 60:1
  • Cybersecurity Risk & Compliance at 28:1
  • Identity Access Management & Security at 24:1‍
• Lowest ratio(s):
  • Several companies at 5:1 (e.g., Logistics & Supply Chain, Social Media & Community, and, Internment & Gaming)

Of the 43 companies with full data available: 

• Highest Ratio for full available amount raised data:
  • Cybersecurity Risk & Compliance at 21:1
  • Education & Learning Platforms at 20:1
  • Healthcare MedTech & Life Sciences 17:1
  • Marketing & Customer Engagement 17:1‍
• Lowest ratio(s):
  • Several sectors at 5:1 (e.g., Logistics & Supply Chain, Data Cloud & IT Management)

Sector Leaders

• Robotics, Automotive & Hardware dominates with $12.55B, significantly ahead of other sectors
• FinTech is the second-largest sector with $9.23B
• These two sectors combined account for about 40% of total funding

How Long did it take for these companies to exit for $1B+?

• Average time to exit: 12 Years
• Longest time: Technisys at 27 years, being founded in 1995 and being acquired by Sofi in 2022
• Shortest time: Two companies went from 0 to $1B in 24 months, Mosaic ML from 2021-2023 getting acquired by Databricks and Bridge from 2022-2024 getting acquired by Stripe

• Fastest Exit Paths: Internet of Things & Physical Operations stands out with the shortest time at 6 years
• Several sectors cluster around 9-10 years:some text
  • Developer Tools DevOps & Infrastructure (9 years)
  • Robotics Automotive & Hardware (9.4 years)
  • Logistics & Supply Chain (9.5 years)
  • Data Cloud & IT Management (~9.6 years)
  • Healthcare MedTech & Life Sciences (9.6 years)
• Longest Time to Exit: Social Media & Community and Construction Tech tie for the longest average exit time at 19 years

The path to an exit is often a marathon, not a sprint. The data reveals that most companies require 10 to 12 years to reach an acquisition or IPO, highlighting the importance of long-term vision and endurance.

While headlines may spotlight rapid successes, quick exits—those achieved in under five years—remain the exception, not the rule. These instances are outliers, suggesting that strategies focused on aggressive scaling and speedy exits cater to only a select few.

Meanwhile, a notable 18% of companies take over 15 years to reach an exit, underscoring the need for patience and resilience in the face of an extended timeline. For investors, this reality demands careful portfolio management, while founders must embrace long-term planning as an integral part of their journey.

Founder Profiles

The total number of founders represented in this data set is 268. Unsurprisingly, technical education dominates, with 26.4% of founders having degrees in fields like Computer Science, Electrical Engineering, and Mathematics. 

The most popular major among founders? Computer Science, claimed by 68 individuals (17.0%), highlighting its position as a cornerstone for tech entrepreneurs.

Notably, 18 founders (4.5%) studied Electrical Engineering, while 14 founders (3.5%) pursued Mathematics, suggesting that foundational expertise in technology and problem-solving remains a key driver of innovation.

Institutions Representation

• Across 268 founders, there were 173 colleges represented. 
• MIT (5.4%), Harvard University (5.11%), and Stanford University (4.55%) dominate the list, reflecting their 15% of all founders and their strong entrepreneurial ecosystems 
• Other notable high-performers include University of Pennsylvania (3.11%), UCLA (2.84%), and UC Berkeley (2.56%).
• Indian Institutes of Technology (multiple campuses represented with a combined 10; 2.84%

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Of the data set of the last 100 $1B+ exits, 69% of the founders are the sole representative of their college. This is proof that entrepreneurial talent is not confined to a select group of elite universities. Instead, innovation is flourishing across a wide range of educational institutions—big and small, urban and rural, elite and regional.

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On average, companies have 2.59 founders, with the median and mode both at two. The range is wide, spanning from solo founders to teams as large as nine. However, the majority of companies fall into a narrower band, with 83% having between one and three founders.

• Two founders: The most common structure (47% of companies)
• Three founders: 25% of companies
• Single-founder companies: 11%
• Four-founder teams: 11%
• Five or more founders: A rare 6%

Some companies defy the norm, assembling unusually large founding teams. Teads, for instance, boasts nine founders—a significant outlier compared to the dataset's average. Couchbase comes in second with six founders, while AMD Pensando, ForgeRock, and OpenGov each have five.

Conclusion

The path to a billion-dollar exit reveals itself as both an art and a science, where patterns emerge but no single formula guarantees success. While the data illuminates clear trends—from the dominance of enterprise-focused sectors to the prevalence of two-founder teams and the decade-plus journey to exit—perhaps the most compelling insight is the sheer diversity of paths to success. For every data point suggesting a "typical" route, we find remarkable outliers that challenge our assumptions. But this is just the beginning. In Part 2, we’ll go beyond the surface, taking a closer look at the stories of these companies to uncover deeper insights and extract actionable patterns—revealing what truly drives a billion dollar exit. Stay tuned as we connect the dots and bring clarity to the complexities of the venture ecosystem.

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