Exit Value to Funding Raised Ratio

Crunchbase recently published a list of US startup (venture-backed) exits — IPOs, Direct Listings, SPACs, and M&As — valued at $1B or more.

Below are some of the statistics for a 3-year period from Jan 2020 to Dec 2022.

* # of exits = 324 (65% of them in 2021, a high record year), valued at $1.47T (on their IPO value or M&A deal price)

* IPOs / Direct Listings represented 42% of the total number of exits, SPACs 39%, and M&As 19%

* Total funding raised by the startups while private = $133B; average by startup = $440M

* Exit Value / Funding Raised Ratio (EFR):

– 1st Quartile = 6.0

– Median = 10.6

– Average = 11.0

– 3rd Quartile = 20.2

Conclusion

The Valuation to Funding Ratio of Fabrica Ventures Fund I current portfolio of 25 unicorns is 5.3; which is below the 1st Quartile and 50% of the Median EFRs.

Thus, Fabrica Ventures’ 2.5x MoIC target (or equivalent to a 13.3 EFR) does not seem far-fetched.