Following last year's boom, global Tech IPO activity has lost momentum. 2021 US Tech IPOs have taken a blow, but several have endured through the turbulence. Read on for benchmarks and observations.
Thanks Janelle, well done. There is certainly a risk-off mentality at the moment.
One question. What period did you use to calculate efficiency?
Was it at the IPO, or the most recent quarter. If the most recent quarter, you might be capturing underperformance as much as you are capturing a particular profile. Said differently, these may be companies that have stumbled their way into the lower quartiles by missing expectations along the way. Those stocks will get hammered regardless of efficiency.
Either way, it's a good reminder to have your unit economics nailed prior to IPO.
Thanks Janelle, well done. There is certainly a risk-off mentality at the moment.
One question. What period did you use to calculate efficiency?
Was it at the IPO, or the most recent quarter. If the most recent quarter, you might be capturing underperformance as much as you are capturing a particular profile. Said differently, these may be companies that have stumbled their way into the lower quartiles by missing expectations along the way. Those stocks will get hammered regardless of efficiency.
Either way, it's a good reminder to have your unit economics nailed prior to IPO.