What does it take to build world class venture backed growth companies? $75 to $100 million on average by one measure. A recent study by CB insights highlights that the average amount raised by about 600 private tech companies in the pre-IPO stage (valuations over $100 million) to be over $100 million.
World Class venture companies in our view are those that have the near term potential to have a billion dollar valuation, over $100 million in sales, have rocket-ship growth, kickass margins and big competitive advantages. These are not companies that will RTO into some promoted shell on the TSXV, but do a $50+ million cross border NASDAQ/TSX offering or be bought by one of the 10 tech giants for some eye-popping valuation.