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US Venture-backed Tech IPO Returns
December 14, 2015 11:00am by Barry Ritholtz
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Off-topic, but I had to quote from the newsfeeds on the right:
“Macroeconomics is in the era of Kepler and Copernicus and Tycho Brahe. We built Ptolemaic models and thought we were doing quantum mechanics,” said Mr. Posen…
Worst Year For Tech IPOs Since 2009
12 Dec 2015
With just 28 technology companies entering the U.S. public markets, 2015 was the worst year for IPOs since 2009, according to Dealogic. This compares to 62 last year and 48 the year before, with 131 “unicorns” opting to remain private longer.
“We haven’t seen so few tech IPOs since the 2008-09 U.S. financial crisis,” notes Kathleen Smith, principal at IPO ETF Manager Renaissance Capital. “Biotech has taken over where tech left off.”
The performance of the tech IPOs has also been subpar. Half of the tech companies that have gone public this year are trading beneath their IPO price, including Etsy which fell 41%. And both Box and Square, went public at market caps that were beneath the valuation of their last private rounds.
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http://techcrunch.com/2015/12/11/worst-year-for-tech-ipos-since-2009/
Hey, a down round is a form of an exit. Sunk costs are irrelevant. So as long as the earlier rounds can get out above what they paid, the’re heroes, right?