Expect a resurrection of technology initial public offerings in 2016 as private fundraising options cool. But when it comes to valuations, it may not be pretty.
After a slow year for tech IPOs, market-bound companies will need to show profitability — in addition to lofty promises of sales growth — before investors are willing to pile into share sales the way they have in the past.
“Investor sentiment has changed for those kinds of companies,” said Michael Goldberg, co-head of U.S. equity capital markets at Royal Bank of Canada, of young IPO-bound tech companies. “They embrace growth but they want to see a path to profitability and to cash flow.”
Complete article here
A great article for investors, entrepreneurs and stock experts!
After a slow year for tech IPOs, market-bound companies will need to show profitability — in addition to lofty promises of sales growth — before investors are willing to pile into share sales the way they have in the past.
“Investor sentiment has changed for those kinds of companies,” said Michael Goldberg, co-head of U.S. equity capital markets at Royal Bank of Canada, of young IPO-bound tech companies. “They embrace growth but they want to see a path to profitability and to cash flow.”
Complete article here
A great article for investors, entrepreneurs and stock experts!
