In 2015, the share of IPO high-tech companies fell to the level of 2008
Research company Renaissance Capital estimates that only 11% of all IPOs in 2015 were made by high-tech companies. In 2008, the share of such companies fell even lower - up to 10%. After 2008, this figure did not fall so low. Renaissance Capital also believes that the market as a whole does not show interest in what venture capitalists are trying to sell.
Today, more than 117 private companies have a valuation above $ 1 billion. Over the year, such companies have doubled. But even if these estimates are not supported on the American market, the investments of investors become unprofitable. This sad prospect complicates the relationship between private companies and investors. “Venture capitalists’ assumptions that these fast-growing private companies can be sold 10 or 20 times more are not confirmed in current public markets, ”said Paul Bard, director of research at Renaissance.
But some startups do not deliberately go IPO. Their business is growing rapidly, even attracting state investors. For example, the online taxi service Uber Technologies predicts an increase in its revenues this year by 400%, while the Airbnb rental service should increase by 200%. Uber has attracted more than $ 5 billion in investments. Investors, including Microsoft, estimated the company at about $ 51 billion.
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“In the public market, the time horizons are as small as ever, and in the private market they are greater than ever before,” said venture capital investor Mark Andreissen. He notes that private investors are now targeting a longer-term perspective, giving start-ups more time to develop. Some companies postpone IPOs, as they simply do not want to burden themselves with the problems of relations with investors and regulators. They are quite comfortable in the status of private firms.
The most favorable for IPO are periods of sustainability in the market. "Megamind" wrote that investors around the world began to fear for a further decline in the shares of technology companies, which is also associated with a slowdown in China - a manufacturer of at least 30% of world electronics and components. In addition to falling demand, the fall in quotations revealed a widening gap between the estimates of private technology companies and the state of affairs in the open (public) stock market, which increases the chances of cost estimates for a group of highly valued companies (so-called "unicorns" - companies with more than a billion). , in dollars, cost estimate).
Quotes of the Chinese company Alibaba in August fell below the level at the time of the IPO, and over the year they fell by 39.1%. Twitter shares since the beginning of the year lost in the price of 23%, almost equal to the initial value. Below the level at the time of the IPO, Box shares are also listed. In general, for IT companies that became public in 2015, quotations fell by 15% relative to the closing price of trading on the first day after the initial public offering, Vedomosti reports referring to The Wall Street Journal.
Today, more than 117 private companies have a valuation above $ 1 billion. Over the year, such companies have doubled. But even if these estimates are not supported on the American market, the investments of investors become unprofitable. This sad prospect complicates the relationship between private companies and investors. “Venture capitalists’ assumptions that these fast-growing private companies can be sold 10 or 20 times more are not confirmed in current public markets, ”said Paul Bard, director of research at Renaissance.
But some startups do not deliberately go IPO. Their business is growing rapidly, even attracting state investors. For example, the online taxi service Uber Technologies predicts an increase in its revenues this year by 400%, while the Airbnb rental service should increase by 200%. Uber has attracted more than $ 5 billion in investments. Investors, including Microsoft, estimated the company at about $ 51 billion.
')
“In the public market, the time horizons are as small as ever, and in the private market they are greater than ever before,” said venture capital investor Mark Andreissen. He notes that private investors are now targeting a longer-term perspective, giving start-ups more time to develop. Some companies postpone IPOs, as they simply do not want to burden themselves with the problems of relations with investors and regulators. They are quite comfortable in the status of private firms.
The most favorable for IPO are periods of sustainability in the market. "Megamind" wrote that investors around the world began to fear for a further decline in the shares of technology companies, which is also associated with a slowdown in China - a manufacturer of at least 30% of world electronics and components. In addition to falling demand, the fall in quotations revealed a widening gap between the estimates of private technology companies and the state of affairs in the open (public) stock market, which increases the chances of cost estimates for a group of highly valued companies (so-called "unicorns" - companies with more than a billion). , in dollars, cost estimate).
Quotes of the Chinese company Alibaba in August fell below the level at the time of the IPO, and over the year they fell by 39.1%. Twitter shares since the beginning of the year lost in the price of 23%, almost equal to the initial value. Below the level at the time of the IPO, Box shares are also listed. In general, for IT companies that became public in 2015, quotations fell by 15% relative to the closing price of trading on the first day after the initial public offering, Vedomosti reports referring to The Wall Street Journal.
Source: https://habr.com/ru/post/294484/
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