The Tech IPO market collapsed this year

According to Ernst & Young’s IPO report, 94% of IPO deals were closed in 2022. FactSet reports that not a single deal in tech raised $1 billion this year. This is after 15 IPOs had raised at least that amount in 2021. “Until we see a persistent return to intelligent capital allocation as the primary driver of investment decisions, I think the IPO market will struggle,” David Trainer from New Constructs. The Nasdaq Marketplace in New York. Michael Nagle | Bloomberg | Getty Images

After a record-breaking performance, tech IPO year in 2021 This included the debuts by electric car makers RivianRestaurant software company ToastCloud software vendors GitLab And HashiCorp Stock-trading App Robinhood2022 was a complete failure.

The U.S. had one notable tech innovation this year: Intel’s Spinoff Mobileye, a 23 year-old company that creates technology for self driving cars. It was listed until its acquisition in 2017. Mobileye raised just under $1 billionAccording to FactSet, this was the only U.S. tech IPO that brought in more than $100 million.

However, in 2021 there were at most 10 U.S. tech IPOs that raised $1 million or more. This doesn’t include direct listings. Roblox, Coinbase And SquarespaceThey were so well-capitalized that they didn’t have to borrow outside cash.

The storyline completely changed when the calendar was turned. Investors opted to forgo future growth and risky investments in favor profitable businesses with strong balance sheets that could weather an economic downturn. After receiving their pre-IPO plans, they changed them. public market peers Take a plunge of 50%, 60%, or in some instances, all the way down