Boring Market

Has our economy resulted in less IPOs by startups?  Have Silicon Valley tech companies instead decided to grow with venture capitalist funding rather then selling a large chunk of themselves to the public?

 

We are no longer in the days of the dot-com boom where an exit strategy is planned before launch and is aimed towards either an IPO or being acquired.  Now entrepreneurs are looking long term with an open ended future where funding is readily available. The idea is massive growth with partnerships and shared technologies with other companies in order to create a business model that ensures revenue. The focus is not only about developing technologies and bringing it to the masses; rather about how soon a company uses these technologies in order to turn a profit.

 

 The gold rush for new start ups hasn’t slowed down as college graduates dream and Xooglers branch out. With the forward progression of start ups, venture capitalists and angel investors are more then willing to support these new and exciting companies. Y Combinator is proof that there is a need for innovation even if an entrepreneur doesn’t have a set business plan. Venture capitalists are willing to throw money at good ideas, and conferences such as Tech Crunch 50 are launching pads for new startups. With both the largest venture capitalist firms and corporate partners such as Google, Microsoft and Yahoo! coming to Tech Crunch 50, start ups get maximum exposure and opportunities for funding.

 

So does this all mean? Well, it means that either the era of techie companies having IPO’s is dead or that Silicon Valley wants to ensure quality companies are developed before going public (or acquired). I want to believe that these companies are choosing on their own behalf not to go public in order to grow a user base and not because our current economic state would eat any IPO alive. Technology companies, especially start ups, should be careful in this market. IPO’s aren’t dead for start ups; they shouldn’t be first priority or the exit.

Tags: Dead·IPO·Silicon·Start·Up·Valley