Sexy IPOs Versus SaaS-y IPOs
This guest post is written by Doug Pepper, who is a General Partner at InterWest Partners where he invests in SaaS, mobile, consumer internet and digital media companies. He blogs at dougpepper.blogspot.com.
IPOs are hot again. Naturally, the press is focused on high-profile offerings like Facebook’s (FB). But, I think there is a more important group of companies going public: Smaller, less sexy Software-as-a-Service (SaaS) startups. Think of it as the Sexy IPOs versus the SaaS-y IPOs. They aren’t household names, but the most recent SaaS IPOs (Cornerstone (CSOD), Jive (JIVE), Brightcove (BCOV) and Bazaarvoice (BV)) are doing better in the public markets, on average, than the Sexy IPOs of LinkedIn (LNKD), Groupon (GRPN) and Zynga (ZNGA). But it isn’t just their performance that matters — the recent IPOs of those cloud-based software companies (plus earlier ones from SuccessFactors (SFSF), Netsuite (N), and Concur (CNQR)) are harbingers of several importantComplete Story »