Technology companies worth more than $1 billion–and many worth $10 billion–have fewer reasons to go public than they did in the past. Here’s what that means for them and their investors. The influx of capital available to private tech companies and the overcapitalization of many unicorns and decacorns have not been without consequences. In the first three months of this year, several private software companies faced valuation pressure in the form of down rounds. Moreover, the average delay in mounting IPOs forces venture investors to wait almost three times longer to realize returns than they did a decade ago.
Fouad Bendris’s insight:
Since 2013, an increasing number of technology companies have achieved “unicorn” status: valuations upward of $1 billion in private markets. As of the end of last year, 146 private tech companies were valued at that level, according to CB Insights—more than twice the number a year earlier. In addition, 14 private companies were “decacorns,” with valuations exceeding $10 billion.
Source:: Strategy & Governance