Morning Report: As tech IPOs finally heat up, here’s how last year’s group has performed to-date.
Yesterday, we took a look at a grip of 2016 tech IPOs, marking time as the current year’s public offering cadence accelerates. After years of few tech IPOs, the market seems ready to accept a number of new debuts in the first half of 2017. Strong results from Snap, Mulesoft, and the very-nearly-IPO AppDynamics deal is encouraging others to pull the trigger.
However, in our look back at 2016, we left out a few smaller IPOs that Quartz noted in its prior work. What counts as “tech” is always squishy, so your list might not match ours exactly. However, we added a number of names to our chart, sourced from the Quartz piece, creating an expanded list of firms we are content to call tech.
We also ran the math on their aggregate results (not rebalanced for either the scale of an IPO or its debut date, inside of 2016). The averaged results are more encouraging than I expected: Last year’s freshman class posted 47 percent gains from their IPO prices, and just under 9 percent from their first day closes.
In the future, I’ll present this list in a more palatable, less vomit-inducing color palate and format, but for today this is what you get:
There is much to say about the results. High-flying offerings Twilio and Acacia are down sharply from their 52-week highs ($70.96, and $128.73 per share, respectively). Both are still strongly up from their IPO prices, but their ensuing declines have cut some cream from the top-end of posted results.
The listed companies comprise the preceding cohort for this year’s IPOs. How bullish it makes you feel will temper how you think late-stage startups that need to go public will perform.
2017: Could it be the year of the tech IPO at last?
Today in the Crunchbase Daily:
Airbnb to triple China staff
- Fresh off a $1 billion fundraise, Airbnb plans to triple its China staff and double investment in the region this year as it targets the country’s millennial consumers, Reuters reports. Airbnb said it currently has roughly 80,000 listings in China that have housed nearly 1.6 million travelers.
Boom raises $33M for supersonic jets
- Boom Supersonic, developer of a supersonic airliner that can travel 2.6 times faster than a typical passenger jet, has raised $33 million in a Series A round backed by 8VC, Caffeinated Capital, Palm Drive Ventures, RRE Ventures and Y Combinator. The company plans to have its plane fly from New York to London in three hours and 15 minutes, at a cost of $2,500 each way, TechCrunch reports.
Altice buying video ad platform Teads for $308M
- European telecommunications provider Altice will acquire Teads, a New York-based video advertising marketplace, in a transaction valued at up to $308 million. Teads previously raised $55 million in equity funding over the past decade.