Accessing capital is the driving force behind every aspect of the market. Private investor funding or public market funding now compete for founder shares in ways not present in capital markets just 10 years ago.The water is murky for exchanges in 2016 as start-ups remain private much longer and this makes perfect sense.If you own AirBnb you would rather get operating capital from Marc Andressen or someone on Sand Hill Rd because they can assist in many ways.It would be nice to have the fanfare of an IPO , but in today's markets it isn't always the end game.
If you talk to CEO's they are anxious about needing to (or being forced to) IPO in 2016.No one knows how the market will react after a flat 2015 and 7 year Bull Run.I would not want to pull my IPO on a day like today with markets down 4%.I think this overhang spreads to all market caps and valuations.Accessing private capital through crowd funding and private investments like never before, and I don't think this is a blip.I think it is a trend, it is evidenced by major exchanges buying private internet based crowd funding companies.
Below are 5 companies who were forced to go public in the first half 2015 and would gladly rethink being forced to IPO.
The 5 Worst Performing IPOs of 2015:
5. Colucid Pharma (CLCD); May 6 -16%
4. Apigee Corporation (APIC); April 24; -17%
3. MaxPoint Interactive, Inc. (MXPT); March 6; -18%
2. Bellerophon Terapeutics LLC (BLPH); February 14; -26%
1. Zosano Pharma Corp. (ZSAN); January 27; -29%
Smart CEO's access private funds and keep their options open for 2016 because they have many options not previously available to them.The IPO calender in 2016 will include important IPO's with Snapchat, AirBnb and others, but many will be watching closely how investors treat these arrivals.These companies will need to hold the valuations they had as private companies to keep the IPO spigot open.Smart CEO's and Venture Capital will be paying close attention.
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