Tech IPO’s for Q1 in 2016
Here’s a hint there’s been zero.
…Ok well there have been a couple. After some research, which was surprisingly difficult (I am amazed that it’s so hard to find data on historical IPO listings). Editas Medicine a genome editing company and BeiGene a drug discovery company based in China are the two companies I could find. Both obviously biotech companies. At this rate we on track to be the worst tech IPO quarter since Q4 of 2008.
What’s going on, where are the unicorns?
Airbnb, Uber, Twilio, and the countless other so called unicorns in Silicon Valley are waiting for a better market environment. While the access to private capital is there and the artificial valuations are set, why ipo anytime soon? This doesn’t mean growth and expansion has to stop. Uber is a great example expanding globally and dominating during pre-ipo. However, it also means no liquidity events anytime soon for current/past employees and access to fresh capital may start to get dry.
I think 2016 will continue to be a bad ipo market for the current unicorns. Hopefully with new technology (AI, VR, IOT) 2017 will be a much better year.