Let's talk about the list of software companies that are probably going to IPO in the next couple of years: Facebook, Groupon, Yelp, Pandora, LinkedIn, Zynga, Twitter
One of the big differences of today's IPO market, is that many of these company's founders have been able to take some money off the table. The founders are rich and early employees are able to have some liquidity via secondary markets. At the same time, there's a lot more capital available to large companies at this stage than there ever was. (See DST's recent investments, Andreesen Horowitz's recent investments). So, the typical reasons that have pushed companies to IPO aren't there any more. That lets technology companies run for a lot longer before they have to IPO or get huge acquisitions.
So, while there haven't been as many software company IPO's as there have been in the past, my gut is that the ones that we do have are going to be larger and more successful.
One of the big differences of today's IPO market, is that many of these company's founders have been able to take some money off the table. The founders are rich and early employees are able to have some liquidity via secondary markets. At the same time, there's a lot more capital available to large companies at this stage than there ever was. (See DST's recent investments, Andreesen Horowitz's recent investments). So, the typical reasons that have pushed companies to IPO aren't there any more. That lets technology companies run for a lot longer before they have to IPO or get huge acquisitions.
So, while there haven't been as many software company IPO's as there have been in the past, my gut is that the ones that we do have are going to be larger and more successful.