IPO Drought Hides Bigger Tech Woes

13 thoughts on “IPO Drought Hides Bigger Tech Woes”

  1. This raises a very good point which entrepreneurs seem to be forgetting about company exits: unless you’re planning an IPO imminently, by the time you’re ready the market will be out of the recession. Just don’t collapse too soon.

  2. I agree with most of this but the drought may also be the results of higher standards before releasing an IPO… people aren’t into all the hype as they use to be regarding tech stocks.

    Jon
    Doubling my money, one stock at a time

  3. RUNNING A GOOD BUSINESS OR IPO

    While it does not surprise me that many folks are lamenting the lack of IPOs, one must keep in mind that if one is running a business one needs to run a good business (i.e., grow revenue, lower expenses etc.). I am not just trying to state the obvious. Sometimes Silicon Valley companies are so focused on an exit to reward employees, VCs etc. that they forget to focus on the fundamentals of running a business. I understand that technology markets are dynamic, things change and so profits are elusive at early stages. However, one needs to keep in mind that an IPO is actually a financing event, not just a liquidity event – i.e., the goal of an IPO is to raise capital.

    We all hope that new technologies are developed and that therefore capital is available to bring these technologies to market. But also keep in mind that companies need to focus on managing their businesses!

  4. One the one hand, the underwriter’s climate is badly deteriorated. One the other hand, even if one could seduce a market maker, the public’s appetite for for new issues may have been damaged along with their hunger for regular ole dow stocks. When was the last time we saw the major market indices and gold drop in lockstep?

  5. @Alan

    I think you make a very valid point and unfortunately that is very true. I don’t think the market is coming back anytime soon, however, as the last slid shows, we need to think in terms of longer term solutions to these problems.
    Unless we address those issues, there is little chance you can expect VCs to pump money into real-big ideas and instead they will keep pushing money into the marginal startups, that require relatively little cash.

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