The Initial Public Offering (IPO) buzz of yesteryear has been drowned out by the doom and gloom of 2022’s bear market.
Traditional IPOs raised just over $5 billion in the first eight months of this year, according to an August report from Dealogic. That is a mere sliver of 2021’s bonanza – IPOs generated over $100 billion over the same time period last year.
The market has cooled substantially this year in response to severe monetary tightening by the U.S. Federal Reserve. Tech firms have been among the hardest-hit sectors. The Nasdaq 100, which tracks the hundred top tech firms, ended the second quarter of 2022 down 29% Year-to-Date, compared to a 20% retreat seen by the S&P 500, which tracks the largest 500 caps across all sectors. With sentiment at such lows, startups are keeping clear of the IPO launchpad lest they be left stranded on the tarmac.
This post originally appeared on Wealth of Geeks.