As we head towards the exits of 2020, we have one more name to add to our roll call of private companies that have reached the $100 million annual recurring revenue (ARR) milestone. Well, one and a half.
But before we get into Nexthink and give Coalition a honorable mention, let’s talk about the startups we’re looking for in 2021.
The $100 million ARR list came together by accident, a quirk of a newscycle that happened to have a few companies reach the threshold when I was in transition back to working at TechCrunch. So, when I got back into our WordPress install, the group of companies that had each recently reached nine-figure revenues was top of mind.
But looking at $100 million ARR companies proved less useful than we might have hoped. Mostly what we managed was to collect a bucket of companies that were about to go public.
That was always a risk. As we wrote at the time:
Perhaps the startup market would do well to celebrate the $50 million ARR mark even more loudly. At $50 million ARR, a startup is scaling to IPO size. That’s the goal, after all.
This is our aim for 2021.
If your startup is approaching the $50 million ARR mark, or the $50 million annual run rate threshold, I want to hear from you. Drop a line if your startup has an annualized run rate between $35 million and $60 million, is privately held, and you are willing to chat about how quickly it is growing. (The Exchange first raised this idea in November.)
Nexthink gets IPO ready
Nexthink is a venture-backed software company with headquarters in Lausanne, Switzerland and Boston. According to PitchBook, Nexthink raised external capital in modest amounts from 2006 until 2014, when the startup picked up a $14.5 million Series D. That round was its first worth more than $10 million.
From there, Nexthink was a venture capital success story, presumably scaling quickly as it raised two larger rounds in 2016 and 2018 worth an estimated $40 million and $85 million, respectively. Nexthink was valued at a little over $558 million (post-money) following its 2018 round.
How did it attract so much external funding? By building digital experience monitoring software. Which, after doing a bit of research this morning, appears to be software aimed at tracking what corporate end-users are doing with devices and how well software running on those devices performs.