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The Tech IPO Market Has Officially Frozen Over

April 5, 2016

In the first quarter of 2016, for the first time in seven years by the Wall Street Journal’s accounting, not one single American technology company went public. The last four times that’s occurred, or not occurred: The third quarter of 2002, the first of 2003, and the first of 2008, all quarters marked by internet bubble bursts or the financial crisis.

Using the same data set, which comes from UK-based financial software company Dealogic, Quartz painted a picture of a very different scene at the same time just two years ago. Then, 24 tech companies took their businesses public for a total of $8.5 billion

CB Insights also points to a dramatic decrease in venture capital funding beginning in the fourth quarter of 2015. During that period, funding fell 30 percent, even as Venture Capital itself raised money at the highest rate in more than 15 years according to another Wall Street Journal article.

And don’t expect so-called unicorns like Uber to thaw the freeze. “I’m going to make sure [an IPO] happens as late as possible,” CEO Travis Kalanick said last week, pointing to an environment unreceptive to high-valuations for tech companies.

Kalanick, of course, was quick to call the public market, not the private financing one, a “bubble” that might be “irrational.” While the public might disagree, until another tech company heads to market, it won’t be able to do so.

Related: Uber CEO: IPO Currently Planned For Never Because Market Is ‘Irrational’
Square’s Dismal IPO Perceived As Referendum On Unicorn Brethren(more)

Affordable housing supporters are hoping for a crash or at least stagnation. Can anyone answer this question? If the affordable housing programs that lock the developer/future owners into rates based on income levels, what happens to the rents when salary AMI’s go down? Do the rents decrease?

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