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Markets

Tech IPOs in 2020: Five Things to Watch

This was not quite the banner year for tech initial public offerings  that private investors had hoped for. All told, 49 tech companies went public in 2019, raising $25.7 billion. That compared with 54 IPOs raising a total of $20.8 billion last year, according to Dealogic. But while the overall amount raised was higher, several high-profile IPOs haven’t performed anywhere near as well as expected. 

Both Uber and Lyft are trading about 34% below their IPO prices, while Pinterest stock has fallen to 4% below its IPO price after initially trading much higher. There were a few bright spots in 2019, notably enterprise software firms Zoom Video, still trading 83% above its IPO price, and CrowdStrike, trading 42% above its IPO price, even though both have fallen from their highs. Their performance reflects investor confidence in the enterprise software business.