As I stated in a previous blog post on my main blog, IPOs (initial public offerings) are not dead. Here’s a great article about the resurgence of IPOs and the increase in medium sized companies going public. – Tiffany C. Wright
Nearly 200 companies are getting ready to go public – the most since 2000. Plus, why VC’s aren’t funding B2B start-ups, and the rest of today’s news.
Each day, Inc.’s reporters scour the Web for the most important and interesting news to entrepreneurs. Here’s what we found today.
Is the IPO pipeline bursting? With favorable market conditions and investor appetite, companies are lining up to go public—168 of them, to be precise. That’s the largest backlog since 2000, and The New York Times’s Dealbook questions today whether all the fervor is creating a dangerous crush—and that valuations could become unhinged from reality. While there’s little indication of the market souring, it’s clear that investor interest is driving up initial valuations—30 percent of offerings have exceeded price expectations this year, according to Renaissance Capital—and that some companies’ stocks quickly deflate from their first-day gains. Peter Falvey, a managing director at Morgan Keegan, gave a light tough of analysis: “People are getting really excited, but it could end badly at some point.”
Who’s funding B2B start-ups? No one, it seems. Good luck getting funding for your start-up if your business model targets other businesses—you’ll need it. According to The Wall Street Journal, start-ups targeting other businesses as their main customers are struggling to find venture dollars. “The shift away from business-oriented technology start-ups has been gathering steam over the past few years,” The Journal notes. “Venture investment into such companies was $11.9 billion in 2010, down 35 percent from $18.4 billion in 2006.” Funding for start-ups that cater to consumers, well, that’s another story completely. In the first three months of this 2011, “venture-capital investment in consumer tech companies nearly tripled to $874 million from $310 million a year earlier…The disparity is stark.”