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Friday, March 27th, 2015


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Rough Market Bad News for Tech IPOs

LinkedIn has fallen substantially in the past week.So far this year, the IPO market has been dominated by a new set of technology companies. That could change in the wake of the recent market volatility, according to USA Today.

The recent downgrade of the U.S. debt rating threw global markets into a panic at the start of the week, continuing the long, 17 percent slide over the past few weeks. In particular, recently public technology companies have seen declining interest. LinkedIn, which sat at $105.65 only August 3, fell as low as $75.47 on Monday before recovering slightly. Zillow and Pandora have lost more than 20 percent and roughly 35 percent of their value since Zillow’s IPO in late July.

“The sound you just heard was the IPO window slamming shut,” Geoff Yang, partner at Redpoint Ventures, told USA Today.

The issue grows complicated when considering that a strong slate of tech IPOs are still scheduled for later this year. In particular, the Chicago Tribune reports that some investors are uncertain what to expect of the Groupon IPO, which was expected to be the largest of this year’s technology offerings. Though the company’s prospects might not have changed, many investors are likely to be wary of its uncertain record.

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