U.S. IPO activity picked up steam in the second quarter after a slow start in 2015, according to a report released Wednesday. There were 66 deals with $13.7b in proceeds in the period, an 88.6% increase in deals and 125% increase in capital raised over Q1, according to the quarterly EY Global IPO Trends: 2015 Q2.
This newspaper has published a number of articles to help investors understand how to purchase pre-IPO shares and the potential risks and rewards of doing so. Our first foray into the area was an article written by Robert Rapp, which discussed the then-newly announced joint venture between SharesPost, Inc. and NASAQ OMX Group to launch a secondary market trading platform for the purchase and sale of private company securities.
The recent IPO success of Uber, Facebook, Airbnb and others, have many investors interested in getting an ownership stake prior to the IPO offering. Prior? Yes, prior. In days past, getting in on a “hot IPO” was something some investors would seek to do as a risky yet potentially rewarding strategy. Today, however, more and more investors are seeking to “get in” earlier.
Nothing is more critical for private equity investors than the exit. Several reports have been published in the past few years indicating a serious decline in one common way of private investor exit – initial public offerings (IPOs).
Whereas crowdfunding can be thought of as a primary market, a pre-IPO market is a secondary market. Stated another way, crowdfunding involves the sale of restricted securities by the issuer of such securities whereas a pre-IPO market is one where a holder of restricted securities can sell them to a third party.