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http://www.pwc.com/gx/en/technology/publications/assets/q3-2016-global-tech-ipo.pdf http://www.pwc.com/gx/en/technology/publications/assets/q3-2... Look at Uni
by roymurdock 10y ago
http://www.pwc.com/gx/en/technology/publications/assets/q3-2016-global-tech-ipo.pdf http://www.pwc.com/gx/en/technology/publications/assets/q3-2...
Look at Unicorn IPOs, starting on p. 7:
"Unicorns made a comeback this quarter with Nets A/S of Denmark and LINE Corp of Japan. Apart from these two, Unicorns have stayed away this year, indicating market uncertainties...The number of IPOs increased primarily due to the significant growth of low-value listings. The absence of large IPOs from major markets indicates that the technology IPO market, while ‘open’, is not very strong. Leaving out Q3’s two billion-dollar-plus IPOs, the average proceeds for the other 18 was just US$105 million. Also, NASDAQ remained the preferred exchange for smaller, cost-conscious technology companies.
In the last few quarters, the top technology IPOs have been launched in Europe and Asia instead of the US, which has historically been a favored option for big-ticket IPOs. In the last five quarters, two of the top three came from Europe. The distribution of the top three IPOs for each of the last five quarters (15 total) has been Europe with six, followed by Asia with four.
The larger tech IPOs from Europe tend to be from well established service companies with a long history of stable earnings. As a result, their IPOs are not negatively impacted by a difficult market."
So if you strip out established services tech companies, traditional liquidity events for unicorns are drying up somewhat. Doesn't sound like a bubble, unless all the hugely-valued private unicorns run out of cash around the same time and flood the public markets, looking to raise equity funding. Of course, this doesn't factor in other types of liquidity events such as acquisitions, which have also fallen off recently [1].
Seems more like a controlled deflation/devaluation than a bubble to me, but who knows. It's fun to watch if you're not too closely affiliated.
[1] https://webforms.ey.com/gl/en/industries/technology/ey-global-technology-mergers-and-acquisitions https://webforms.ey.com/gl/en/industries/technology/ey-globa...