At the end of August I noted with surprise that three midsize tech companies had filed to go public in the US, and said that there success in making the next step to actually listing would tell us a lot about the state of the market. In the last couple of days we have heard that Groupon, the tech company everyone loves to hate has cancelled its roadshow and is reassessing its plans to IPO, and Zynga is also facing delays (although not as severe), and this comes on top of news that more IPOs were pulled in August than in any month for ten years.
Entrepreneurs and their investors make money when companies are acquired or when they IPO, with the bigger checks usually coming from IPOs. The upshot of this is that a healthy IPO market has been the most important driver of returns to VC funds, which has a direct knock on effect on the amount of money available to invest in startups and startup valuations.
To read the full, original article click on this link: IPOs and the tech venture cycle « « The Equity KickerThe Equity Kicker
Author: Nic Brisbourne
