The IPO market for tech startups has been a topic of much speculation and anticipation this year. Despite some successful IPOs, experts are cautious about the potential for a flood of tech IPOs in 2024.
Greg Martin, co-founder and managing director at Rainmaker Securities, believes that the market may not see a significant increase in tech IPOs until 2025. He predicts a healthy flow of 10 to 15 companies going public this year, but not a flood.
Lawyer Jeremy Glaser echoed Martin’s sentiments, emphasizing the need for more data to gauge the success of recent IPOs. Companies like Klaviyo and Instacart, while initially performing well, have seen their market caps decrease since their IPOs.
The timing of the recent IPOs, coupled with uncertainty surrounding the economy and the upcoming election, has added to the cautious outlook. Despite some positive signs in the market, experts like Martin and Glaser remain skeptical about the stability of the market.
While some investors were unsure about the IPO market heading into 2024, the successful IPOs of companies like Astera Labs, Reddit, Ibotta, and Rubrik have sparked optimism. These companies have all traded above their IPO prices, indicating a strong market reception.
Overall, the sentiment among experts is that VCs may have to wait until next year for a significant uptick in tech IPOs. However, M&A activity remains robust, offering investors alternative avenues for returns this year. The IPO market may not be booming just yet, but there are still opportunities for companies to go public and investors to see returns.