The U.S. IPO market is finally getting up and stretching its legs after a long hibernation with tech firms at the lead. In March, of the 13 companies that launched IPO's, half of them were technology firms. As per the most recent SEC filings, of the 79 deals readying for the market, 26 are tech related deals.
Many of the companies filing, including tech deals, are the result of postponements that planned to go public in 2007 or 2008, only to withdraw from the economic downturn. They have since refiled to make another run at the market.
These postponements actually give the investor a clearer view of the specific business environments these companies are now operating in. These entities will now be more seasoned and probably more apt to withstand tough economic conditions and as a result, investors should have more confidence in their ongoing performance. In hindsight, another year or two have passed and in a perverse way these companies are far more valuable now than prior to the downturn.
We're experiencing an marked increase in traffic on the Capital MatchPoint as both investors and capital seekers are becoming more serious about fundings with an urgency thats becoming more intereting as the year moves along. A growing proportion of the companies registering on the site are mid stage firms and are now seeing the exit strategy of a public offering far more clearly and are preparing for this event with more fervor than in the recent past.
With the looming financial reform legislation, the timing is a poignant reminder of how fast things can change, some for the good and the not so good. With the governments proposed restrictions on angel investment, essentially upping the financial requirements for the angel from $1,000,000 to $2,300,000 in net worth, this cuts 77% of the existing angels out of the game for funding start ups and small ventures that the banks won't touch. With a 9.7% unemployment rate and by the fact that small businesses employ 10% of the overall job force, it's time for investors to step up as this may be the last time alterntive investments will be available.