After hitting an all-time high of 1,035 IPOs in 2021, public offerings plummeted to just 181 in 2022 and 154 in 2023. This year, IPOs are trending upward with 81 IPOs completed as of mid-June—pacing to an 18% increase over 2023. Isabelle Dufour Freidheim, founder and managing partner at Athena Capital, emphasizes the changing market focus: “Profitability is in high demand now for fast-growing tech companies. Investors have adopted a risk-off approach in the recent environment.” This shift is reflected in the success of larger, profitable IPOs like Reddit and Astera Labs, both up 87% and 54%, respectively, since their market debut (as of market close on June 26, 2024). Adam Nash, CEO at Daffy, notes a promising trend: “We’ve had a few IPOs now where the quality of the company is high, and the market seems to be receiving them well.” With the IPO market gradually opening up, the focus is on quality and profitability, setting a new tone for companies eyeing public exits. 🚀📈
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This is fascinating! It's intriguing to see how the IPO landscape is evolving with a renewed emphasis on profitability and quality. Isabelle Dufour Freidheim's point about the market's risk-off approach really resonates—it's a clear sign that investors are becoming more discerning. Adam Nash's observation about the market's positive reception to high-quality IPOs is encouraging as well.