BackStartups

United States · 10 profiles

The American exits, 1997 to 2021

Ten founders, eight sales and two Nasdaq listings. The buyers were nearly always bigger technology companies buying their way into a product they had not built themselves.

10
Founder profiles
8
Sold to a buyer
2
Went public
1997–2021
Exits span

The oldest exit here is Hotmail, sold to Microsoft in 1997 for a figure of roughly $400 million that was widely reported and never officially confirmed. The newest is Bumble, which raised $2.2 billion on Nasdaq in February 2021. In between sit PayPal, VMware, Zappos, Omniture, Instagram, Twitch, Stitch Fix and AppDynamics.

Eight of the ten were bought rather than floated, and the buyer was usually a large incumbent: eBay took PayPal, EMC took VMware, Adobe took Omniture, Amazon took Zappos and then Twitch, Facebook took Instagram, Cisco took AppDynamics. AppDynamics never made it to the market at all. Cisco put $3.7 billion in cash and equity on the table one day before the IPO was due to price at a valuation under $2 billion, and the company took it.

Seven of these companies were built within an hour of San Francisco. The other three were not. Zappos ran from Henderson, Nevada, Omniture from Orem, Utah, and Bumble from Austin.

United States: straight answers

Why are there so many acquisitions and so few IPOs?
Eight of these ten ended in a sale and two went public, both on Nasdaq. That is a fact about the ten profiles on this page, not a measurement of the American market. We picked exits we could verify against multiple sources, and clean, well-documented acquisitions are easier to stand behind than the messier endings.
Were all of these Silicon Valley companies?
No. Seven were headquartered in the Bay Area. Zappos was in Henderson, Nevada, Omniture in Orem, Utah, and Bumble in Austin, Texas.
What can an angel take from a page of billion-dollar outcomes?
The deal stories, mostly: who the buyer was, what triggered the sale, and how far the final number sat from the one being discussed a year earlier. What this page cannot tell you is how often it happens, because every company here is a survivor. For the arithmetic of how many cheques it takes to catch one of these, read portfolio maths.
How do I actually invest in a US startup?
Start at the US desk. It covers who counts as an accredited investor, how SAFEs work, and the QSBS tax treatment that exists nowhere else.