2019 has been a remarkable year for IPOs.
Not only has 2019 brought us IPOs, but it has delivered some exceptional private companies. Even more companies are expected to be publicly traded in the marketplace as well. In the first 3 quarters of 2018 we had 1,793 IPOs that raised $45.7 billion which is 46% more then 2017. That is three times more then the amount raised in 2016. 2019 is predicted to be one of the best years the market has seen. When it comes to raising private capital many of the popular companies to invest in did not make their way to the stock market. Companies like Lyft, Pinterest, Uber, Peloton, and Zoom all started by raising money from private companies. Many of the companies mentioned are coming out of massive valuations. There values will fall due to competitors. For example, Uber has lost value due to the Lyft stock. But they both have lost value since going public. When companies like this go public it can shift things in a downward spiral. When Facebook went public it lost more than 30% in stock value, but proper executions were made, and the company was able to propel stock price forward afterwards. On a final note for investors, the IPO excitement may end up increasing attention and appetite. Pay attention retail investor fund flows to understand if investors are putting money into the market. You never know when a private company might decide to go public.
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