Tech IPOs skid in worst year since 2009

This was the worst year for tech IPOs since 2009, according to data compiled by Dealogic that shows that “unicorns” electing to remain private along with economic uncertainty has taken a toll on going public.

There were only 28 tech IPOs in the U.S. this year, down from 62 in 2014 and 48 in 2013, Dealogic reported Monday. Compare that to the dot-com boom, when there were back-to-back triple-digit years for U.S. tech IPOs from 1995-2000, with a peak of 377 in 1999, according to Dealogic’s compilation.

U.S. tech IPOs sagged to only 8 during the financial crash of 2008, but have revived somewhat during the years since then.

On possible reason for the slump: More “unicorns” – private startups that are worth $1 billion or more – are electing to remain private longer, experts say.

Globally, IPOs of all types were down 23.9 percent so far in 2015, according to Renaissance Capital, which tracks public offerings.

U.S. companies raised $30 billion in public offerings, a drop of 64.4 percent from 2014, Renaissance said, with 169 IPOs of all types, a 37.6 percent drop.

The leading sector was health care, with 78 IPOs.

Renaissance attributed a “dramatic” third quarter slowdown to “heightened market volatility stemming from economic growth concerns in China and uncertainty surrounding an interest rate hike in the United States.

Photo: Illustration (Mercury News archives)

 

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