There were 262 ad tech exits in 2015, according to research from
US-based ad tech firm OpenX, which published a blog post today looking
at how consolidation in the industry is expected to “continue apace”
over the next few years.
Archie Sharma, OpenX’s director for corporate strategy, pooled the PitchBook database
and public findings on the number of ad tech companies founded each
year, plus the total number of exits (through IPO, acquisition, or
simply going out of business) each year since 2001.
Sharma estimated the average lifespan of an ad tech company is just six years.
He used a linear fit model to determine that there was a “strong
correlation” between the number of companies exiting in a year and the
number of companies founded six years ago. Most (82%) are acquired,
fewer than 5% IPO, and the rest (13%) fail and shut down.
Fewer than 5% of ad tech companies have survived past 10 years. (OpenX, incidentally, is 8-years-old.)
http://www.businessinsider.com.au/average-lifespan-of-an-ad-tech-company-2016-7
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