EquityZen
  • ···
  • Marketplace
  • ···
  • How it Works
  • ···
  • Knowledge Center
  • ···
  • About
  • ···
  • ···
  • ···

Investor Newsletter >

Weekly Update #179 - What will the 2017 IPO market look like?

EquityZen
Dec 27th, 2016

What will the 2017 IPO market look like?

That's a great question. To put things in perspective, I revisited a Tom Tunguz post called "Are Tech IPOs Dying?", written in August 2014. Here's a chart from that post (Facebook was excluded):

Defining a MegaRound as a private round of venture financing of $50M+, Tunguz went on to aptly summarize (and predict) the new normal:

"The MegaRounds of today are the same size as the IPOs of five or ten years ago. In some sense, they have replaced those IPOs. But MegaRounds haven’t cannibalized IPOs altogether. These MegaRounds typically aren’t providing the same type of liquidity to founders and investors as a true public offering, though many of them do have substantial secondary share sale components to founders and employees. Rather, they empower startups to remain private longer and continue to grow, which enables them to command higher valuations and raise more capital at IPO."

If we are to agree with Tunguz, then 2015 and 2016 indicate an onslaught of mega-IPOs for 2017. Here is a look at MegaRounds between 2014-2016 (source: Crunchbase):

A great report is also available on TechCrunch, called "The drought is over… a torrent of tech IPOs is expected in 2017." Importantly, the article is authored by Sandy Miller, a late-stage venture investor at Institutional Venture Partners (IVP). You may know them because of their portfolio (Casper, Domo, Github, Kayak, Snap, Sofi, Honest Company, etc). And you should take Miller's prediction seriously: IVP has quite the track record.

Source: IVP.com

 

 

 

View more newsletters

Join 290,000+ global shareholders and investors on EquityZen

Marketplace

  • Shareholders
  • Investors
  • Multi-Company Funds
  • Investment Returns

Resources

  • FAQs
  • Blog
  • Newsletter
  • IPO Center
  • Knowledge Center

Company

  • About
  • Careers
  • Press
  • Contact Us

Connect

Investment opportunities posted on this website are "private placements" of securities that are not publicly traded, are subject to holding period requirements, and are intended for investors who do not need a liquid investment. Investing in private companies may be considered highly speculative and involves a high degree of risk, including the risk of substantial loss of investment. Investors must be able to afford the loss of their entire investment. See our Risk Factors for a more detailed explanation of the risks involved by investing through EquityZen’s platform.

EquityZen Securities LLC (“EquityZen Securities”) is a subsidiary of EquityZen Inc. EquityZen Securities is a broker/dealer registered with the Securities Exchange Commission and is a FINRA/SIPC member firm.

Equity securities are offered through EquityZen Securities. Check the background of this firm on FINRA’s BrokerCheck.

EquityZen.com is a website operated by EquityZen Inc. ("EquityZen"). By accessing this site and any pages thereof, you agree to be bound by our Terms of Use.
EquityZen and logo are trademarks of EquityZen Inc. Other trademarks are property of their respective owners.
© 2023 EquityZen Inc. All rights reserved.

  • Disclosures
  • Business Continuity Plan
  • Privacy Policy
  • Allocation Policy
  • Form CRS
EquityZen Inc.
30 Broad Street,
Suite 1200
New York, NY 10004

Secured via DigiCert Extended Validation certificate
FINRA's BrokerCheck
SIPC