CB Insights posted this chart on Twitter today. As you know at Forward Partners we’re ecommerce and marketplace investors, so we like to keep tabs on all aspects of the ecommerce market.
— CB Insights (@CBinsights) September 10, 2015
Historically there haven’t been many exits in ecommerce, so it’s good to see the number rising. I think this trend has some way to go because ecommerce penetration is still only in the low teens in the UK and US and is lower still in many other countries.
To really kickstart the exit market we need a few more huge ecommerce businesses to compete with Amazon. That would unlock the sort of strategic exits we’ve seen in software and consumer internet over the years.
Until then it’s important to make sure the fundamentals of a company add up so that they will be able to make substantial profits once they hit scale.