IPOs Return 💪

Table of Contents

IPOs Return

As ideas continue to circulate and markets are seemingly created in days, the number of new public companies in the past few decades has been historically astounding. Alongside breakthroughs in Tech and the everlasting success of financial markets, the number of new public companies in the form of IPOs, otherwise known as initial public offering, reached an unprecedented record in 2020 of 480. Just a year later, that record was more than doubled to 1,033, more than half of all IPOs enacted during the 1980s. This exponential boom was, however, short-lived, as a dry spell in 2022 left total IPOs at 181. But why? The ultimate basis for a company going public is to increase opportunities for funding and raising capital. In the past few years, the increased popularity of private markets has eliminated several contenders from joining the exchanges, as they can receive all the funding, they need without all the associated risk from Wall Street. High costs and legal headaches involved with the IPO process also acted as major deterrents last year, but advocations from exchanges like NYSE and Nasdaq were able to convince the SEC to loosen control last December.

Luckily for technology investors, it seems the latter half of 2023 may hold an uptick in the volume of venture-backed Tech IPOs. This past week, grocery delivery company Instacart, chip designer Arm, and marketing automation startup Klaviyo all made SEC filings to go public, hopefully promulgating a long-standing revival in the space. With a robust economy and better-than-expected earnings figures, it is no surprise that private companies may follow suit, especially with the laxer IPO regulations. Now, some unconfirmed but highly anticipated names that may enter the exchanges are SpaceX, Stripe, Discord, Reddit, and more.

Want to learn how to invest? Download the Invstr app, where you can play Fantasy Finance and manage a virtual investment portfolio or open a brokerage account and invest for real. Take our interactive investing course on Invstr Academy and become a better investor today!

I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

Share:
More Posts
The Crude Oil Bust 🛢

Surging global crude oil prices, driven by factors like OPEC+ production cuts have pushed U.S. West Texas Intermediate futures to over $95 per barrel.

Metaverse Returns 🤖

Meta, led by CEO Mark Zuckerberg, is intensifying its commitment to innovation in the Metaverse through the introduction of the Quest 3 VR headset.

Higher Rate Households 📈

The recent Fed decision to pause rates has left the federal funds rate at its highest level since 2000.

Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community. The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results. Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such. Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.