If Everything Is So Great, Where Are The Unicorn IPOs?
By Tyler Durden
Over the course of the last week it seemed no matter where I turned in the business media one meme was being pushed above all others: It’s still a great time to be a private tech unicorn. Implying, that funding rounds were still “robust.”
What wasn’t said, so I will, is this: It’s a great time to be a private “unicorn” rather, than take the chance and become the poster-child for the IPO apocalypse. For it’s better to be assumed a $BILLION dollar success story rather, than IPO and officially open the books to the market and remove all doubt – that you’re not.
It would seem “additional funding rounds” is the story (the only story I’ll contend) that keeps the whole “unicorn” meme alive. For if these were great companies, at great valuations, with great prospects to earn or reward investors, founders, employees and so forth untold riches (which of course is told as to lure and keep talent and others) during the same period the “markets” were within a trading days movement of reaching never before seen in human history highs. How many tech unicorns of the over 150 now residing in the “unicorn stable” even hinted at a date, never-mind actually announced? __________ (Insert crickets here.)
At this stage a few questions must now be addressed. One would be: If it not now, when? And not a vague “when.” But rather: precisely when?
If a company today that has been raising funds to even be within this so-called “exclusive club” can’t articulate a date, or time period, with specificity. In other words: Definitive announcements that have meaning with dates such as those declaring “within the next 30, 90…,” whatever days. Or, something reminiscent of stating “November of this year barring a market panic or sell off etc., etc.” Not some lame “Market conditions warranted us deciding to postpone setting a date blah, blah, blah…” PR trash. Than are they to be believed of any metrics?
Why is this so important one might be asking? Easy, let’s put this into some context:
For all intents and purposes, 2016 is close to being over for just an announcement and the time needed to follow up with the subsequent roadshow to price and launch. Remember, we are currently 5 weeks away from the half-year point of 2016 without either an announcement or actual IPO. (Oh wait, there was one – Dell™. Need I say more?)
Again, it must be reiterated: 2016 is now well into its 5th month and within spitting distance of “the first-half is history” mark. And during this period the “markets” have been within a percentage point of breaking the all time highs and still remain at elevated levels.
The rise from the lows of February were not only meteoric, they were actually historic in both their percentage gains, as well as, time frame.
Add to this the Fed. has all but conceded “extraordinary monetary measures and policy” are the norm, rather than temporary. While reiterating: will remain for the foreseeable future. …read more
Source: If Everything Is So Great, Where Are The Unicorn IPOs?
