So Egynte is one of those SaaS leaders in the content management space that has always been quieter than its peers Box and DropBox.  It focused on enterprise workflows early, and while that’s Box’s focus today, Egynte was there early.  It’s one of the Old Times in Documents and Content Management in SaaS.

I’ve only met the CEO once but he’s been the CEO since Day 1 in 2007 and will remain the CEO too after their “exit” to Private Equity for $1.5 Billion.  I was extremely impressed with his all-in commitment and calm intensity.

PE firms TA Associates and GI Partners are buying out much of the existing investor stakes and many employee stakes, but some VCs and execs will “roll over” a portion.

It’s a real billion+ SaaS exit and one to examine and reflect on for a moment.

Egnyte by the numbers:

• Probably ~$250m ARR.  They were at $200m ARR growing 25% in July 2023.  Could be a bit higher, or a bit lower.
• Consistent 20%-25% growth once at scale.  I don’t have the exact numbers but growing 20%-25% after $100m ARR or so seems to be what’s reported.
• Raised $137m in VC capital, but stopped raising in 2018 and funded with cash and cash flow thereafter.  So they were able to sell for 10x what they raised.  The magic mark where almost everyone does at least reasonably well.
• Raised last round at $460m valuation or so.  Enabling those investors to make likely a clean 3x on this deal.  Which is what most growth VCs really want.
• So around a 5x-6x ARR exit.  Something just to be aware of when you raise your Series A round at 40x.  Given that the average public SaaS company trades around 6x, honestly, this seems like a pretty fair deal.

So their unicorn exit took quite a while.  It took 18 years.  But being slow and steady and thoughtful about fundraising put them in position to take a $1.5 Billion exit from PE.

We’d all like to get there faster.  But sometimes, somewhat slower but steady is who you are.  Too slow rarely works, but we don’t all have to be Triple Triple Double Double to win.  If a bit slower is you, and you can remain competitive — maybe lean into it.  Focus on where you win, and be careful how much you raise, and at what prices.

A $1.5 Billion exit to PE after 18 years isn’t the next Wiz or Datadog.  It’s not the timing or plan for many hot AI startups today.  But it’s pretty darn impressive.  Top 0.01%.  And better that than overfunding a unicorn that never quite gets there.

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• Source: https://www.saastr.com/egnyte-sells-to-private-equity-for-1-5-billion-after-years-steady-wins-too/