US PE & VC

IPO TRENDS
2016 REPORT
In partnership with

PE IPO activity
Analysis of trends in IPO count
and capital raised over recent
years. Page 7

VC prior to IPO
Breakdowns of VC activity before
public debuts. Page 10

IPO pipeline
Tables of upcoming
PE & VC-backed IPOs. Page 16
 Credits & Contact
PitchBook Data, Inc.
JOHN GABBERT Founder, CEO
ADLEY BOWDEN Vice President,
Market Development & Analysis

Content
NIZAR TARH U NI Senior Analyst
K YLE STANFORD Analyst
DYL AN COX Analyst
ELIZABETH ARMON Analyst
BRYAN HANSON Data Analyst
J ENNIFER SAM Senior Graphic Designer

Contents Contact PitchBook

pitchbook.com

RESE ARCH
research@pitchbook.com

EDITORIAL

Introduction 4 editorial@pitchbook.com

SALES
Overview 5-6 sales@pitchbook.com

PE IPOs: Activity 7
PE IPOs: Metrics 8
PE IPOs: Sector 9
VC Prior to IPO 10 COPYRIGHT 2016 by PitchBook Data,
Inc. All rights reserved. No part of this
VC IPOs: Activity 11 publication may be reproduced in any
form or by any meansgraphic, electronic,
or mechanical, including photocopying,
VC IPOs: Metrics 12 recording, taping, and information storage
and retrieval systemswithout the express
written permission of PitchBook Data, Inc.
Contents are based on information from
VC IPOs: Sector 13 sources believed to be reliable, but accuracy
and completeness cannot be guaranteed.
Nothing herein should be construed as any
IPO pricing & window 14-15 past, current or future recommendation to
buy or sell any security or an offer to sell, or
a solicitation of an offer to buy any security.
IPO pipeline 16 This material does not purport to contain
all of the information that a prospective
investor may wish to consider and is not to
Methodology 17 be relied upon as such or used in substitution
for the exercise of independent judgment.

3
P I TC H B O O K 201 6 P E & VC I P O T R E N D S R E P O R T
2016 IPOs on pace to record
lowest level since 2009
Introduction

Thus far into 2016, the IPO market has continued
to suffer considerably from a basket of headwinds
stemming from both domestic and political strains,
diverging global market outlooks, and a significant
amount of capital sitting in the funds of private
financiers able to prolong the private lifetimes of
many companies that traditionally would be on the
cusp of IPOing. In fact, the first month of the year
saw no IPOs come to market, and for private equity,
no portfolio companies completed a public offering
throughout the entire first quarter of the year! At the
current pace, 2016 is set to see both capital raised
and completed IPO counts come in at their lowest
levels since 2009.
of mangers holding certain assets that might simply
be too large to try and push to a strategic or to
another PE firm.
For VC, we continue to see the most highly valued
companies remain private. Just two VC-backed
companies valued at over $1 billion came to market
and although both were able to list in a relatively
smooth manner, we havent seen them set the tone for
other heavily-funded venture portfolio companies.
If you have any questions or comments on the analysis
and datasets within this report, feel free to reach out
to us at reports@pitchbook.com.

For PE, many managers continue to take advantage of

strategic acquirers hungry to purchase growth rather
than build organically. However, the sponsor-backed NIZAR TARH U NI
listings that weve seen have tended to be rather large Senior Analyst
compared to the rest of the market, a trend indicative

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4
P I TC H B O O K 201 6 P E & VC I P O T R E N D S R E P O R T
Overview
US PE and VC-backed IPO activity by quarter

55 54 54
Capital Raised ($B) IPO Count
49 46
43
40
41
29 36 28
26 26 22
24 22 20 23

22 23
22 21
19 18 19
17
6
$11

$20

$17

$13
$2
$5

$4

$5
$2
$5
$5

$3
$4
$4
$8
$5

$9

$4
$9

$8
$5
$5

$4
$3
$2

$2
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
2010 2011 2012 2013 2014 2015 2016
Source: PitchBook

Despite a recent wave of IPO pricings US IPO activity by year

giving rise to speculation regarding the
IPO window opening, 2016 collectively Capital Raised ($B) IPO Count
paints a very different picture. Three Source: PitchBook 199
quarters through the year, just $7.2 *As of 9/30/2016
billion was raised across 49 PE and 155
VC-backed public offerings, reflecting 144
declines of roughly 49% and 48%,
130
respectively, relative to the same
period last year. At the current pace,
2016 is set to see both total IPO capital 91 117
106
raised and volume come in at their 88
lowest levels since 2009, which saw 36 49
just over $9 billion raised via 36 public
28
listings.
$20

$24

$13

$24

$31

$34

$35

$19
$4

$9

$7

With an abundance of capital available

from both PE and venture investors,
the incentives to move forward with
a costly public listing simply arent
there, especially when you couple the
rich dry powder environment with an
uncertain global economic, business,
political and exit landscape. Public
flotations tend to perform better
during times where the public markets
are stable and moving consistently
higher, and while equities in the US are
2006 2007 2008
up YTD, we continue to remain a bit
confused around the main drivers of
equities in this environment. Earnings
and revenue growth have remained
less than optimal, and economists
continue to forecast slow GDP growth,
but the markets have fought off just
about all signs of adversity, whether
2009 2010 2011 2012 2013 2014 2015 2016*
those be concerns around monetary
policy, the UK referendum or even the
surprising results of the US presidential
election. On a relative basis, US
equities have certainly outperformed
the bulk of European and Asian stock
markets in 2016, so while at first glance
US public markets may look well

5
P I TC H B O O K 201 6 P E & VC I P O T R E N D S R E P O R T
suited to handle new listings, we think Over 60% of filings are being priced within their expected range
a notable driver of US stocks today % of US IPOs pricing above, within and below expected price range
stems from an investor base that has
100%
looked to avoid the turbulence weve
seen in foreign equities. With that in 90%
mind, companies looking to list will 80%
need to prove to institutional investors 70% High
that despite the sluggish macro
environment we highlighted above, 60%
they have the stewardship, capital 50%
expenditure discipline and ultimately In Range
40%
the business model to continue driving
growth and profitability in a slower-
30%
moving market. 20% Low
One trend weve noted when looking 10%
at private financings, especially on 0%
the PE side, has been the split in 2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

the quality of companies PE firms
have chased. The result of this can
be seen in the heightened multiples
PE continues to pay to close deals,
however there continues to remain
a group of second-tier companies
that simply cant garner the multiples
weve seen in recent years. We think
weve noticed a similar occurrence
in the IPO markets today. Through
the third quarter of 2016, just under
12% of companies priced at the high
end of their respective IPO range, yet
we saw a rather impressive 60% of
companies hit their target range, the
highest figure weve seen since 2008,
which saw nearly 67% of companies
do that. Further, 28% of companies to
list this year priced at the low end of
their range, slightly less than the 30%
and 35% figures we saw in 2015 and
2014, respectively. While total IPO
activity has remained subdued, the
quality of companies willing to move
forward with a public flotation appears
to be improving and such companies
have had success completing offerings
efficiently.
The rest of 2016 might be marked by
continued uncertainty, yet as investors
continue to adjust to a changing
dynamic that involves a new president
in place, along with a potential new
wave of venture-backed companies
prepping to test the markets in 2017,
well begin to gain a better picture of
The average offering size has fallen for the 4th consecutive year
Median and average offering size of US IPOs
$350
Average ($M)
$300
Median ($M)
$250
$200
$150
$100
$50
$0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016*
where institutional investor appetite
lies for new offerings. Performance
on the secondary markets will also be
important to monitor, and that also
applies to listings that see significant
pops in their newly traded stock. While
Twilio was able to come to market and
hold a successful IPO, the fact that
their stock traded up close to 300%
within one month of listing should be
looked at from a couple of different
angles. Primarily, we should credit
the company for standing out and year.
2016*
Source: PitchBook
*As of 9/30/2016
Source: PitchBook
*As of 9/30/2016
$187
$163
$148
$100 $90
$88
attracting significant interest, yet we
also think that stock could have been
underpriced by its advisors. With little
IPO activity for bankers to benchmark
against at the moment, the task of
marketing and pitching companies to
institutional investors understandably
may come with significant uncertainty.
To say the least, syndicate desks
will have their hands full finding the
adequate equilibrium in terms of
offering price for future listings next

6
P I TC H B O O K 201 6 P E & VC I P O T R E N D S R E P O R T
PE IPOs: Activity
US PE-sponsored IPO activity by quarter

27
Capital Raised ($B) IPO Count Source: PitchBook
25
24

18 18
17 16
14
12 12 15 12
10 10 11
12 9 9
11 11 7
9 10 6
9
6
$10

$13

$11
0
$2
$4
$1
$3

$3
$2
$2
$3
$3
$2
$2
$3
$6
$3

$6

$3
$6

$5
$2
$3

$3
$2
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
2010 2011 2012 2013 2014 2015 2016

Through the first three quarters of US PE-sponsored IPO activity by year

2016, PE-backed companies accounted
for 37% of IPOs, which is about the
same as 2015, but well below the Capital Raised ($B) IPO Count 78
portion we saw for most of the last
decade. For comparison, PE-backed Source: PitchBook
67
companies made up 72% of US IPOs 71 59 *As of 9/30/2016

in 2009, a number which has declined

fairly consistently since. 49
18 PE-backed IPOs have been
completed this year, raising a total of 42 45
41
$5 billion, on track for the slowest year
weve seen since 2008 in terms of both
18 18
the number of IPOs and the funds that 26
they raise. About half of the capital
raised this year ($2.4 billion) has been
$16

$16

$10

$18

$10

$25

$25

$11
$4

$8

$5

concentrated in the offerings of just

three companies: commercial kitchen
supplier US Foods, pharmaceutical
developer Patheon, and hotel and
casino operator Red Rock Resorts.
Two of these three, US Foods and Red
Rock Resorts either have completed
or are in talks to complete a debt
refinancing post-IPO, a move not
uncommon with companies who have
recently gone public and subsequently
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016*
have easier access to the full range of first quarter, both 2Q and 3Q of this
capital markets. year produced nine IPOs eachstill
far from the record numbers put up
On a quarterly basis, PE-backed IPOs
in 2013-2014, but more of a reversion
have fared better in recent months
to the mean rather than a complete
than the annual data would suggest.
vanishing act.
After a grand total of zero IPOs in the

7
P I TC H B O O K 201 6 P E & VC I P O T R E N D S R E P O R T
PE IPOs: Metrics
The median offering size for PE- PE-sponsored offering sizes show little change over 2015
backed IPOs has come in at $183 Median and average offering size of PE-sponsored IPOs
million, slightly down from the $186
$500
million number we saw in 2015, yet Average ($M)
relatively high on a historical basis.
Compared to the entire IPO market, Median ($M)
$400
PE-backed offerings raised more than $360
double the $90 million median we saw
when taking a look at the offering size $270 $277
from both VC and PE-backed raises. $300

Larger raises are to be expected

from PE-backed businesses due to $199 $183
$200
the nature of where these companies
$186
typically lie in their lifecycles. Where
venture capitalists back earlier-stage
$100
companies, PE sponsors can many
times be operating companies that
are multiple decades old. The mature
nature of these businesses culminates $0
in a group of companies that have
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016*
Source: PitchBook
been able to grow their revenues and *As of 9/30/2016
respective businesses over a much
longer period. Thus, while PE has
potentially been able to help such PE IPO postvaluations fall for third consecutive year
companies boost margins and drive Median and average IPO postvaluation
cash flows, the sheer size of these
$2,500
companies results in larger capital
Average ($M)
raising requirements.
Median ($M)
At $863 million, the median $2,000
postvaluation of PE-backed companies $1,689
completing public listings this year
came in at the highest level weve
$1,500
seen since at least 2005. Although
many sponsors have had success $1,361
$1,295
selling smaller portfolio companies
$1,000
to other PE counterparts, as well as $762
to strategics looking to put money to $896
work acquiring PE-backed companies, $643
the bulk of that activity occurs along $500
the core middle market. Moving
forward, sponsor-backed IPOs wont
likely increase dramatically, yet the $0
ones that come forward will typically 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016*
Source: PitchBook
lay at the upper end of the size *As of 9/30/2016
spectrum and thus, offering sizes and
postvaluations should stay high.

8
P I TC H B O O K 201 6 P E & VC I P O T R E N D S R E P O R T
PE IPOs: Sector
In a year with very few initial public B2B has accounted for 25% of all PE-sponsored offerings
offerings in the US, the normal % of PE-sponsored IPO activity by sector
distribution of capital raised by
100%
industry has landed far from the B2B
norm. In the first three quarters 90%
of the year, there were no IPOs B2C
80%
in the IT, energy or materials &
resources sectors. The void of 70% Energy
offerings was expected in the
60%
energy and materials segments, Financial
due to the sustained depression 50% Services
in commodities prices and lack Healthcare
40%
of investor confidence that those
prices will recover anytime soon. 30% IT
In these two sectors, we have seen
20%
more bankruptcies and divestitures Materials &
instead of IPOs. The dearth of 10% Resources
offerings by IT companies, however,
0%
is not so easily explained. After the

2016*
2006

2007

2008

2009

2010

2011

2012

2013

2014

2015
IPOs of PE-backed companies like
Source: PitchBook
GoDaddy and First Data in 2015,
*As of 9/30/2016
as well as the heightened interest
in the IT sector shown by PE firms
this year, we expected to see
more tech IPOs in recent quarters. More than 20% of capital raised in IPOs has gone into healthcare
That being said, the October IPOs % of IPO capital raised by sector
by fintech developer BlackLine 100%
Systems and exploration company B2B
Extraction Oil and Gas show some 90%
renewed interest in these sectors. 80% B2C

70% Energy
Due to the weakness of the overall
market, 41% of capital raised via 60%
Financial
PE-backed IPOs this year has been 50% Services
by B2B companies. The $2.0 billion
40% Healthcare
raised by B2B PE-backed offerings
so far this year has already 30% IT
exceeded the $1.9 billion in 2015,
and the sector is on pace to match 20%
Materials &
the eight IPOs it produced in 2015. 10% Resources
Both years however, are a far cry
from the more than $6 billion 0%
2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016*

raised across 13 IPOs in 2013.

Source: PitchBook
*As of 9/30/2016

9
P I TC H B O O K 201 6 P E & VC I P O T R E N D S R E P O R T
VC activity prior to IPO
A major narrative that has Median and average VC raised prior to IPO
pervaded the VC industry lately is
$160
that companies are staying private Average ($M)
longer. The first three quarters $140
Median ($M)
of 2016 enforced that idea, as the $113
$120
median and average time between $109
$94
a company receiving its first VC $100
$85
investment and exiting through $92
$80
IPO lengthened considerably. A $80
driving force behind the uptick in $60
timeframe is the ability for late- $40
stage companies to find financing
for continued growth in the private $20
Source: PitchBook
markets, rather than subject $0
*As of 9/30/2016

themselves to the IPO process 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016*
without revenues and net incomes
worthy of public investment. In
Median times to IPO
2015, 102 VC financings were
completed of at least $100 million, 12
giving those companies ample
10 9.5
runway to get their performance 8.9 8.9
indicators in line with public
8
investor desires before beginning 6.8 7.0 8.2
the IPO process. When analyzing 6
the average and median amount
of VC raised prior to IPO, it should 4
Source: PitchBook
be taken into account that half *As of 9/30/2016
2
of the completed offerings in 0.9 0.5 0.7
2016 have come from pharma 0
& biotech companies. Although 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016*
drug development is a costly and
Founding to IPO (years) 1st VC to IPO (years) Last VC to IPO (years)
time-consuming endeavor, such
companies have traditionally taken
on less VC before a move to the Median postvaluation change multiple
public markets.
3.0

As companies have opted to stay 2.5

Source: PitchBook
*As of 9/30/2016
private longer, the average change
between the last private financing 2.0
valuation and IPO postvaluation
has fallen in recent years. In 2016, 1.5
the median postvaluation step-up
multiple plunged to a decade low 1.0
1.47x, highlighted by Nutanix and
Twilio. As the only two unicorns to 0.5
2.47x

2.26x

2.34x

2.61x

2.00x

1.85x

1.69x

1.68x

1.82x

1.78x

1.47x

IPO in 2016, their valuations grew

by just 1.1x and 1. 2x, respectively. 0.0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016*

10
P I TC H B O O K 201 6 P E & VC I P O T R E N D S R E P O R T
VC IPOs: Activity
To say that the VC-backed IPO since 2008, and just four offerings for many unicorns to enter the
market for US-headquartered raised more than $100 million. The public market. All eyes may now be
companies has slowed over lack of large offerings may come on Snap, which is rumored to be
the past two years may be an as a bit of a surprise, as this year seeking to raise multiple billions in
understatement. In 2014, 121 was thought to be a possible year an IPO next year.
offerings were completed, by far
the high-water mark of recent
US VC-backed IPO activity by year
history, but activity has fallen
by roughly 64% (full-year 2016 $25 140
pace) since, with just 31 offerings
Capital Raised ($B) IPO Count 121
completed through 3Q. After
120
January passed with no completed $20
IPOs, just six VC-backed 88 100
companies listed during the first 85
quarter, the lowest quarterly total $15
80
since 1Q 2009 (0), resulting in
61 76
just $380 million in capital raised;
60
none of the completed offerings in $10
1Q were made by a tech company. 59 42
Activity has picked up slightly14 46 40
initial offerings were completed $5
10 10 31 20
in 3Q, and seven companies went

$22

$11
public in October alonebut no
$3

$8

$4

$6

$9

$8

$2
completed offering in 2016 has $0 0
resulted in more than $250 million 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016*
in capital raised for the first year Source: PitchBook
*As of 9/30/2016

US VC-backed IPO activity by quarter

Capital Raised ($B) 40

IPO Count

29 30 30
Source: PitchBook
25
22 27 24
24
15 13 13 15 14
12 12 11 15 16 11
10
8 8 13
12 10 6
$17
$1
$1
$1
$1
$1
$2

$3
$2

$1
$2
$1
$2
$3
$4
$3
$2
$1
$4
$1
$3
$3
$2

$1
$1

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
2010 2011 2012 2013 2014 2015 2016

11
P I TC H B O O K 201 6 P E & VC I P O T R E N D S R E P O R T
VC IPOs: Metrics
Falling well below $100 million, the Median and average IPO offering size
average offering size dropped 32%
$450
from last year to $72 million, the
Median Oering Size ($M)
lowest level since 2008. The steep
$400
decline in comparison to recent Source: PitchBook
Average Oering Size ($M) *As of 9/30/2016
years has been accentuated by $350
the lack of outsized offerings that
previously pushed up the averages. $300
Four VC-backed companies raised
over $400 million in IPOs in 2015, $250
along with two companies in
$200
2014Facebook s $16 billion IPO
in 2012 is what s driving the spike $150
seen in the chart to the right. This $107
$88 $72
year, however, the largest offering $100
through 3Q has come in at just
$76
$237 million (Nutanix), while 87% $50
$66 $67
of completed IPOs have fallen
$0
below the $100 million mark.
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016*

While in theory public offerings

still offer a more probable path to
liquidity than acquisitions for the
most heavily funded and valued Median and average IPO postvaluation
companies, they do come along
with the investor scrutiny that $2,500
Median Postval ($M)
private markets are able to shield Source: PitchBook
against. Even with $1 billion-plus *As of 9/30/2016
Average Postval ($M)
valuations, many unicorns continue $2,000
to operate in a state of massive
growth that brings along high burn
rates and negative bottom lines.
$1,500
Rather than face likely criticism
with an IPO, the unicorns that
the industry hoped would make
a public offering this year have
$1,000
instead opted to tap into easily
accessible late-stage capital from $519
$438 $424
the private markets once more, $500
or still have enough runway from

$249 $285 $249

a large financing raised last year.
Those unicorns that did complete $0
an IPO priced their offerings fairly 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016*
conservatively and realized only
moderate valuation climbs. That
said, both names did see their
stocks soar in secondary trading.

12
P I TC H B O O K 201 6 P E & VC I P O T R E N D S R E P O R T
VC IPOs: Sectors
Following the market selloff at Pharma & biotech has accounted for more than 50% of VC IPOs in 2016
the turn of the year, the investor VC-backed IPOs by sector (#)
demand for tech IPOs that 100%
Pharma & Biotech
founders had come to expect in
2014 and 2015 lagged considerably.
90%
HC Services & Systems
After a quiet first quarter with 80%
zero tech offerings, the software HC Devices & Supplies
and IT hardware sectors have 70%
picked up their pace a bit, Commercial Services
60%
debuting a combined nine VC-
Consumer Goods &
backed companies on US markets. 50% Recreation
Twilios $150 million raise in 2Q, Energy
40%
and subsequent move to a high
of nearly $71 per share (~400% 30% IT Hardware
growth), was hoped by many to
spur an open window for the IPO 20% Media
market, but just one other tech
10% Software
company privately valued at $1
billion or more has completed an 0% Other

2016*
2006

2007

2008

2009

2010

2011

2012

2013

2014

2015
offering.
Source: PitchBook
*As of 9/30/2016

Continuing to represent the

largest share of IPO volume, Despite lack of offerings, software has raised 30% of capital raised in IPOs
pharma & biotech has accounted VC-backed IPO capital raised by sector ($)
for 52% of all offerings this year,
100%
a considerable uptick when Pharma & Biotech
compared with its 17% share 90%
in 2011. The extended drug
HC Services & Systems
development cycle creates a need 80%
HC Devices & Supplies
for such companies to access 70%
consistent funding that the Commercial Services
traditional VC model might not 60%
be able to support. Establishing a Consumer Goods &
50% Recreation
capital markets presence can be a
Energy
major benefit for pharma & biotech 40%
companies as it allows them to IT Hardware
conduct follow-on offerings and 30%
access more immediate capital at Media
20%
a much quicker pace than what
might be available in the private 10% Software
realm. Other
0%
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016*

Source: PitchBook
*As of 9/30/2016

13
P I TC H B O O K 201 6 P E & VC I P O T R E N D S R E P O R T
IPO pricing & window
Select PE and VC-backed IPOs in 1Q 2016

Company Expected range midpoint Final IPO price IPO postvaluation (M) 1st Day 3 Month

Editas Medicine $17 $16 $379 13.75% 93.69%

AveXis $20 $20 $448 -9.75% 82.30%

Proteostasis
$15 $8 $153 -17.00% 56.25%
Therapeutics

Syndax $15 $12 $208 0.08% 12.67%

Corvus Pharmaceuticals $16 $15 $306 -5.00% -12.27%

Source: PitchBook

Select PE and VC-backed IPOs in 2Q 2016

Company Expected range midpoint Final IPO price IPO postvaluation (M) 1st Day 3 Month

US Foods $22.5 $22.5 $5,100 10.71% 8.93%

Red Rock Resorts $19.5 $19.5 $2,260 -4.10% 16.36%

Cotiviti $18 $19 $1,740 -9.95% 51.68%

SiteOne Landscape
$21 $21 $830 27.00% 80.19%
Supply

Atkore International $21 $16 $999 0.00% 12.56%

Intellia Therapeutics $17 $18 $610 22.78% -1.89%

Twilio $13 $15 $1,233 91.93% 311.33%

Acacia Communications $22 $23 $820 34.57% 194.35%

NantHealth $14 $14 $1,690 32.75% -6.36%

Selecta Biosciences $15 $14 $251 0.00% -5.36

Source: PitchBook

14
P I TC H B O O K 201 6 P E & VC I P O T R E N D S R E P O R T
IPO pricing & window
Select PE and VC-backed IPOs in 3Q 2016

Company Expected range midpoint Final IPO price IPO postvaluation (M) 1st Day 3 Month

AdvancePierre Foods $21.5 $21 $1,650 14.29% 32.90%

Medpace $21.5 $23 $912 20.83% N/A

E.L.F. Cosmetics $15 $17 $754 55.88% N/A

Kinsale Capital Group $15 $16 $336 14.69% 42.25%

Kadmon Corporation $18 $12 $538 -19.17% -46.58%

Nutanix $14 $16 $2,196 131.25% N/A

The Trade Desk $17 $18 $688 67.22% N/A

Apptio $14 $16 $597 40.94% N/A

Talend $16 $18 $503 41.67% 30.39%

Everbridge $12 $12 $323 27.08% N/A

Source: PitchBook

Select PE and VC-backed IPOs in October 2016

Company Expected range midpoint Final IPO price IPO postvaluation (M) 1st Day 3 Month

BlackLine $16.50 $17 $814 39.41% N/A

Acushnet Holdgings $22.5 $17 $1,260 2.41% N/A

Coupa Software. $17 $18 $866 84.88% N/A

AquaVenture Holdings $19 $18 $457 21.94% N/A

Quantenna
$15 $16 $524.5 -6.25% N/A
Communications

iRhythm Technologies $14 $17 $359 53.24% N/A

Ra Pharmaceuticals $13 $13 $279 0.00% N/A

Source: PitchBook

15
P I TC H B O O K 201 6 P E & VC I P O T R E N D S R E P O R T
IPO pipeline
Select upcoming PE-sponsored offerings

Company Select investors Sector 2015 revenue ($M) Last buyout date Last buyout size (M)

Albertsons Cerberus Capital Management B2C $5.873 N/A N/A

Goldman Sachs Alternative

PSAV B2C $1,487 1/27/2014 $1,020
Investments, Olympus Partners

Cortec Group, Fifth Street

YETI B2C $468.9 6/15/2012 $67
Asset Management

Goldman Sachs, Leonard

Soul Cycle B2C $117.7* 5/31/2011 $719
Green & Partners

McGraw-Hill
Apollo Global Management B2C $1,834 3/22/2013 $2,400
Education

Sterling Partners, KKR, Point27

Laureate
Asset Management, StepStone B2C $4,292 7/20/2007 $3,800
Education
Group

Jeld-Wen Onex B2B $3,381 10/3/2011 $1,502

Source: PitchBook
*denotes figure for the nine months ended September 30, 2015

Select upcoming VC-backed offerings

VC raised 2015 Revenue Most recent private

Company Select Investors Sector to date (M) (M) postval (M)

Flagship Ventures, Polaris Partners, Bill Pharma &

Visterra $69.8 $111.25
& Melinda Gates Foundation biotech

Pharma &
Thar Pharmaceuticals Innovation Works $6.6 $19.5
biotech

Sequoia Capital, TCV, Startup Capital Financial

Elevate Credit** $237.7
Ventures Services

**denotes spinout Source: PitchBook

16
P I TC H B O O K 201 6 P E & VC I P O T R E N D S R E P O R T
Methodology
All datasets in this report cover US-based
companies debuting on US exchanges, and unless
otherwise noted, they are as of September 30,
2016.

DEFINITIONS
Postvaluation: For this report, PitchBook calculated
postvaluation as the total number of outstanding
common shares multiplied by the final IPO price.
Offering size: PitchBook calculates offering size as
the total number of common stock shares offered
multiplied by the final offering price. If the stock has
not achieved a final price, the midpoint of the pricing
range is used. If the pricing range has not been filed,
the proposed maximum aggregate offering price is
used.
Upcoming IPOs: The companies were selected among
the total number of PE and VC-backed companies
that are currently in registration to go public.
Investors were also sampled from the total number of
backers.
PE or VC sponsorship: PitchBook bases PE or VC
sponsorship on whether or not a PE or VC investor
owns an interest in a company that has filed for an
upcoming IPO.
American Depository Shares: When applicable,
PitchBook calculates American Depository Shares
as a representation of ordinary (common) shares,
taking into account whatever representation is
outlined in the companys SEC filing.
1-day and 3-month performance: In this report, the
first-day performance is calculated by comparing
the offering price to the price at the end of first
trading day; the 90-day performance is calculated
comparing the offering price to the price at the end
of the first three months of trading.

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