Danny Crichton (@DannyCrichton)”> In comparison to an anemic 2016 for venture-backed technology IPOs, 2017 was a much better year. Companies as diverse as Yext, Cloudera, Blue Apron, StitchFix, and SendGrid all went public last year, not to mention one of the most anticipated IPOs of the past few years, Snapchat.
Looking forward to this year, there are a bunch of potential companies on the docket that could go public, and times couldn’t be better given the record highs of the S&P 500 and the Dow. There are growing dark clouds on the horizon for the future of IPOs.
It looks likely that Spotify will run a direct listing, bypassing bank underwriting on the way to the public markets. Blockchain is increasingly drawing the attention of retail investors cynical of IPOs and their corruption.
And funds like the SoftBank Vision Fund are increasingly raising private capital to protect companies from the ravages of vulture funds. At issue is an increasing awareness that the current IPO system is corrupt beyond belief, an insiders game at the end of a company’s growth cycle that rewards those who know the right people while shortchanging retail investors in the process.
That awareness is not going to recede, especially when alternative options are increasingly viable. I caveat this prediction of the death of the IPO by noting that their supposed death has been predicted many times before. Read more from techcrunch.com…
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