But there are reasons to be optimistic that we will get a decent public offering.
IPO market So far 2023 is a goose egg, and we probably won’t get any exciting IPOs for another quarter or two. This is incredibly unfortunate for your friendly, local TechCrunch+ reporting team, who love the S-1 more than anything else.
The good news is that when we get the IPO train back on track, we should be able to see some decent public-market startups.
Let’s talk about why.
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If you look back at the Silicon Valley Bank survey, which feels different now than it did two weeks ago, you can get a good idea of why institutions aren’t expecting an influx of IPOs in the near future. In its State of the Markets report for the first half of 2023, SVB predicted that “US VC-backed tech IPOs will remain dormant in H1 2023.”
So far, that’s 100% correct.
However, the bank said, “The market will be transparent [interest] Rate ceiling [and] As future earnings multiples match long-term averages and interest from institutional investors builds” and unicorns, we should expect no less than 10 IPOs from venture-backed companies by mid-year.
When we first read it a while ago, I felt a touch of optimism. Why do we go from zero to double digits in such a short period of time?
After that we got a little more context. TechCrunch+ recently spoke with Arjun Kapoor, managing partner and co-founder at Forecast Labs, on the IPO question.
(Prediction Labs is a sister unit of Comcast Ventures. The latter is a venture shop for parent company Comcast NBCUniversal that invests in strategic interests, from Internet access to cable television to content. Corporate integration. Prediction, by contrast, trades equity for television advertising access, essentially marketing on the tube. Lower CPA-based advertising offers equity.It’s a very interesting model for companies that want to reach a large audience of consumers, but at a lower price.)