But there are reasons to be optimistic that we will get a good crop of public offerings
IPO market So far, 2023 has been a goose egg, and we probably won’t get any significant IPOs for another quarter or two. That’s pretty sad for your friendly local reporting crew at TechCrunch+ who loves S-1 more than anything.
The good news is that when we get the IPO train back on the rails, we should be able to see a very good series of public market debuts.
Let’s talk about why.
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If you are digging back Through Silicon Valley Bank Research, which now looks somewhat different than it did a couple of weeks ago, you can get a pretty good idea of why institutions shouldn’t expect a wave of IPOs in the near future. In its State of the Markets report for the first half of 2023, SVB predicted that the US VC-backed technology IPO market will remain dormant in the first half of 2023.”
So far, this has been 100% true.
However, the bank also predicted that “the market will become clear about… [interest] Ceiling price [and] Forward revenue multiples are in line with long-term averages and pent-up demand building from institutional investors” and rhinos, we should expect at least a dozen IPOs in the back half of the year from venture-backed companies.
When we first read it a while ago, we felt a touch of optimism. Why do we go from zero to double digits in such a short time frame?
We’ve since gotten a little more context. TechCrunch+ recently spoke with Arjun KapoorManaging Partner and Founder at Forecast Labs, on the IPO question.
(Forecast Labs is a sister entity to Comcast Ventures. The latter is an investment shop that invests in areas of strategic importance to its parent company, Comcast NBCUniversal, a consolidation of companies that stretches from Internet access to cable TV to content itself. By contrast, It trades stocks to get access to TV ads, essentially offering CPA-based ads at a below-market price on the tube for stocks. It’s a very interesting model for companies that want to reach a larger audience of consumers, but at a discount.)