But there is reason to be optimistic that we can get a good harvest of public offerings.
IPO market 2023 is a goose egg so far and probably won’t get any interesting IPOs for another quarter or two. This is very sad for his friendly, local TechCrunch+ reporting crew who love S-1 more than anything else.
The good news is that when the IPO train hits the tracks, we should be able to see quite a few public market debuts.
Let’s talk about why.
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Digging into Silicon Valley Bank’s research, which feels a lot different than it did two weeks ago, helps explain why institutional investors aren’t expecting a surge in IPOs in the near future. In his State of the Markets report for the first half of 2023, SVB predicts that “the market for US VC-backed tech IPOs is likely to remain dormant in the first half of 2023.”
So far it’s 100% correct.
But the bank also said, “If the market [interest] interest rate ceiling [and] Future earnings multiples are consistent with building long-term average and pending demand from institutional investors and unicorns.
When I first read it some time ago, I was a little optimistic. Why go from 0 to 2 digits in such a short time?
I’ve since gotten a little more context. TechCrunch+ recently spoke with Arjun Kapur, managing partner and founder of Forecast Labs, about his IPO question.
(Forecast Labs is a sister company of Comcast Ventures, a venture shop that invests in areas of strategic interest for its parent company, Comcast NBCUniversal. Forecast, in contrast, exchanges shares for access to television advertising and essentially offers CPA-based advertising at lower rates than the market on the tube. , a very interesting model for companies wanting to reach a wider consumer audience, but at a discount.)
