NSussman Techcrunch Exchange v3 BLU

What comes after unicorns and centaurs? • Tech Crunch

Lessons from startups that have reached the $1B revenue threshold

NSussman Techcrunch Exchange v3 BLU

Once upon a time, reaching a $1 billion valuation is a big deal. But the glow of a so-called unicorn valuation on a startup has faded as more and more private companies hit the threshold — often with less and less to back it up.

Technology Flow, where the term “unicorn” was born, recognized the dilution of the denomination by working to collect notes instead of startups that reached the $100 million revenue run rate, often measured in terms of annual recurring revenue, or ARR.


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That project was pursued by a venture capital firm, dubbing startups that reached the nine-figure revenue mark “Centars” for obvious reasons. Because there is more to learn from startups that reach $100 million in revenue than those that reach $1 billion in valuation, the refocus is useful.

But what about the former startups that reach out? 10 Figures of income? What can we learn from them?

exchange banner sq blu plusFriends & Family Capital (multi-stage, mostly focused on companies with eight-figure revenue growth of 80% or more) conducted an interesting analysis of private companies that tried to find out. Friends & family compiled its findings into a report I recently digested. Technology Flow also spoke with John Fogelsang and Colin Anderson from the firm about what they learned from the data.

As a result startups don’t stop at $10 million or $50 million worth of revenue before selling to some big corporation. Here’s how the biggest private-market companies got there.

Where the winners spend

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