The Clap
Following a record-breaking 2021 for tech company IPOs, this year saw proceeds gathered from IPOs significantly less, with Mobileye (NASDAQ:MBLY) being the only notable IPO.
What
Mobileye managed to raise just under $1bn in its IPO this year. Other tech IPOs, on the other hand, did not manage to raise even $100mn.
Last year, there were at least 10 IPOs that manages to raise proceeds of over $1bn.
So What
Challenging economic conditions and high interest rates drove investors away from investing in riskier growth companies and move toward companies with solid financials.
Many companies opted against an IPO this year and will wait out the economic uncertainty first.
Now What
Investors will be patiently waiting for volatility to ease. The president of the NYSE expects a promising 2023 due to a strong backlog of IPOs.
