Why this year’s IPOs have been awful
IPOs have often been a mixed bag. And there have always been some duds. But historically the companies that go public have been up-and-comers. This year’s crop seems like a mixture of has-beens, misfits, and never-weres. GoDaddy, the biggest tech company to IPO in 2015 so far, is years past its buzzy Super Bowl ad prime and still doesn’t make money. Several recent biotech debuts are years away from a breakthrough drug. And execs at crafting website Etsy say the company is not about profits.
Facebook can take some of the credit. The social media giant’s 2012 dud of a launch has become a cautionary tale. Then, in 2013, the Jobs Act made it easier to raise money as a private company. Tech startups raised $9 billion privately in the first quarter, or 13 times the $710 million raised through public offerings, according to Triton Research. The companies that aren’t hurting for investors, like Uber and Airbnb, have so far opted out of the public markets and the headaches that come with them.Read full article at fortune.com