The founders of Jfrog owned 24% of the business at IPO. Viant’s founders owned 93% and Datto’s founder owned 15%. Braze’s founders owned only 4% combined. The range of founder ownership at exit/IPO can be wide and is dependent on any number of factors, including the ability to command high valuations during fundraising and capital efficiency.
The list below shows founder ownership of the last 124 SaaS companies at IPO. The median level of founders ownership shown is 15% while the average is 19%. Note the ownership is combined for the corresponding founders shown.
A few things to consider:
Bootstrapping. Viant was built with no VC. As a result, the founders own 93% of the business.
Small ownership. The founder of Docusign, Thomas Gonser, owned 1.5% of the business when it went public. In instances like these, it’s impossible to tell whether he was diluted down to that figure or sold shares along the way to end up at a lower figure.
VC own 56% on median. Most founders should get used to the fact that if they raise significant capital from VC, then VC will come to own the majority of the company. However, that doesn’t mean they have control, as many of these companies have founders that own a class of stock which still controls voting.
Strategics don’t matter. Of the 124 companies listed, only 21 of them (17%) had a strategic investor. Strategic investors are not critical to any company’s success.
Thank you for your readership. See more blogs and SaaS data at blossomstreetventures.com. Email the author at sammy@blossomstreetventures.com.
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