4 ms·

It's fascinating to see so many IPOs happen in the past two years. Apparently there have been more IPOs in the past two years than 2014-2019 combined (https://s

It's fascinating to see so many IPOs happen in the past two years. Apparently there have been more IPOs in the past two years than 2014-2019 combined (https://stockanalysis.com/ipos/statistics/ https://stockanalysis.com/ipos/statistics/) in spite of the pandemic. I guess it's because there's just so much money swishing around - why not?

shoto_io 5y ago
Jap, I bet it’s related to this chart https://fred.stlouisfed.org/series/M1NS https://fred.stlouisfed.org/series/M1NS
- yellow_lead 5y ago
  You might want to read that footnote about the definition of M1 changing at May 2020
  - shoto_io 5y ago
    Ok thanks for pointing out. A high amount of money was printed in that exact timeframe though. What’s a good graph to show that?
  - N00bN00b 5y ago
    Just odd. Why would you change a definition in the middle of an existing chart... Just call it M1a or M11 and add a new chart. Curious what is really going on that I'm not supposed to understand.
    - yellow_lead 5y ago
      Yeah, because the end result is people pointing to it as though it's some extraordinary change. My guess would be it was easier and they're lazy bureaucracy.
boringg 5y ago
M1 money supply + endish of a bull cycle of tech companies founded early 2010s (coming out of the 10 year VC timeline) and also SPACs (Assuming SPACs are included that would be the driving reason)
sjg007 5y ago
Musical chairs maybe…
988747 5y ago
VC investors are cashing out - a sign of impending doom. Expect Dotcom Crash 2.0
- noway421 5y ago
  VC investors are in the business of cashing out, that's the mandate of the funds that they raise. Why would that signal an impending doom?
simonbarker87 5y ago
The VCs need their exits to pay their funders back and the markets are very “hungry” at the moment so they are cashing out the only route they have available
that_guy_iain 5y ago
I believe the surge in IPOs isn't in spite of the pandemic but because of the pandemic.
MangoCoffee 5y ago
dotcom bubble started with many IPOs
goodpoint 5y ago
Expect a huge crash...
ushakov 5y ago
as inflation rises, it's good times to attract investors
reilly3000 5y ago
There was actually a big decline in IPOs during that period. I honestly can’t say why but I remember it was starkly lower than average. Perhaps for regulatory concerns?
jackcosgrove 5y ago
Successful companies seem to be more likely to be started during lean times, and startups take 10+ years to mature. We were in the recession aftermath ten years ago.
nstart 5y ago
I wish I could take the time to analyze findings and correlate; could this be due to a period of fundings reaching a peak many years ago? I recall there was a time it seemed a lot of celebrities were suddenly dying and there was an article that came out pointing that many of them simply belonged to an era of media growth (or something along those lines). So they were all roughly from the same age group and were well… For lack of a better way to put it, reaching their expected age range of demise together. I recall that years back when I was in uni, the software funding market was becoming super active and people were predicting (and denying) a bubble back then. This was in the 2008 to 2012 time period I think. Are we just seeing a lot of these companies now all “graduating” together? It feels like it matches the timeline of around 10-12 years or so which is when they might be expected to IPO? PS: I feel like a lot of what I said is based on vague memories of things I’ve read over the years so I apologize if any of that is untrue.

shoto_io 5y ago

Jap, I bet it’s related to this chart https://fred.stlouisfed.org/series/M1NS https://fred.stlouisfed.org/series/M1NS

yellow_lead 5y ago
You might want to read that footnote about the definition of M1 changing at May 2020
- shoto_io 5y ago
  Ok thanks for pointing out. A high amount of money was printed in that exact timeframe though. What’s a good graph to show that?
- N00bN00b 5y ago
  Just odd. Why would you change a definition in the middle of an existing chart... Just call it M1a or M11 and add a new chart. Curious what is really going on that I'm not supposed to understand.
  - yellow_lead 5y ago
    Yeah, because the end result is people pointing to it as though it's some extraordinary change. My guess would be it was easier and they're lazy bureaucracy.

boringg 5y ago

M1 money supply + endish of a bull cycle of tech companies founded early 2010s (coming out of the 10 year VC timeline) and also SPACs (Assuming SPACs are included that would be the driving reason)

sjg007 5y ago

Musical chairs maybe…

988747 5y ago

VC investors are cashing out - a sign of impending doom. Expect Dotcom Crash 2.0

noway421 5y ago
VC investors are in the business of cashing out, that's the mandate of the funds that they raise. Why would that signal an impending doom?

simonbarker87 5y ago

The VCs need their exits to pay their funders back and the markets are very “hungry” at the moment so they are cashing out the only route they have available

that_guy_iain 5y ago

I believe the surge in IPOs isn't in spite of the pandemic but because of the pandemic.

MangoCoffee 5y ago

dotcom bubble started with many IPOs

goodpoint 5y ago

Expect a huge crash...

ushakov 5y ago

as inflation rises, it's good times to attract investors

reilly3000 5y ago

There was actually a big decline in IPOs during that period. I honestly can’t say why but I remember it was starkly lower than average. Perhaps for regulatory concerns?

jackcosgrove 5y ago

Successful companies seem to be more likely to be started during lean times, and startups take 10+ years to mature. We were in the recession aftermath ten years ago.

nstart 5y ago

I wish I could take the time to analyze findings and correlate; could this be due to a period of fundings reaching a peak many years ago? I recall there was a time it seemed a lot of celebrities were suddenly dying and there was an article that came out pointing that many of them simply belonged to an era of media growth (or something along those lines). So they were all roughly from the same age group and were well… For lack of a better way to put it, reaching their expected age range of demise together. I recall that years back when I was in uni, the software funding market was becoming super active and people were predicting (and denying) a bubble back then. This was in the 2008 to 2012 time period I think. Are we just seeing a lot of these companies now all “graduating” together? It feels like it matches the timeline of around 10-12 years or so which is when they might be expected to IPO? PS: I feel like a lot of what I said is based on vague memories of things I’ve read over the years so I apologize if any of that is untrue.