A Look At the Kinds of Companies That Will Go Public This Year
Deciding to go public with your company is never an easy decision. Most business owners must have considered this option at one point. It requires meticulous planning and preparation, it could take months or even years before the owner(s) decide to go public with any business.
CB Insights, a company that specializes in analyzing tech trends, predicted that over 369 companies could go public (IPO) this year. According to the company, the individual companies in this IPO pipeline has been able to raise an average of $262 million at this time. When put together, all of them raised about $86.2 billion in equity financing as of last month.
Further research showed that about 73% of the businesses that are considering IPO are internet companies. Mobile and telecommunications companies are the next after the internet companies. However, the mobile and telecommunication has about 39 companies on the list compared to the Internet companies 269.
According to CB Insights, the tech companies that are most likely to go public in 2017 are Qualtrics – an Utah-based software company, Zuora – an internet company that specialize in making of softwares for business subscriptions, Blue Apron – meal kit delivery service, Okta – security software maker, and Pluralsight – a New Mexico-based company that makes online video tutorials for tech skills.
Fifty-four, out of the 369 IPO pipeline businesses are based in New York, 205 are based in California, and 21 in Massachusetts. The top 5 are in Utah with eleven companies and Texas with 10.
According to the report, Andreessen Horowitz – a firm which has previously invested in companies such as Buzzfeed, Airbnb, and Facebook is the venture capital firm that most had its finger on the pulse. The firm has the highest number of IPO pipeline companies in its portfolio that worth $1 billion or higher last year.