Tuesday, October 12, 2010

The IPO Downturn

During the 1990s the US routinely had 40 IPOs per month. Some months even exceeded 100.

The average number so far this year is under 14 and, of course, was even lower during the crisis.

The question is why?

The importance of fixing this seems pretty obvious. Getting at the root cause(s) of what's driving the trend and actually fixing it is something else altogether. A rigorous assessment of the forces that discourage the launch of new public companies is needed.

It's not just that more IPOs are needed but higher quality ones with long-term impact. Check out the chart in their post.


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