Visual Capitalist August 25, 2020
Tech IPOs — Hype vs. Reality
Initial Public Offerings (IPOs) generate massive amounts of attention from investors and media alike, especially for new and fast-rising companies in the technology sector.
On the surface, the attention is warranted. Some of the most well-known tech companies have built their profile by going public, including Facebook by raising $16 billion in 2012.
But when you peel away the hype and examine investor returns from tech IPOs more closely, the reality can leave a lot to be desired.
The Hype in Numbers
When it comes to the IPOs of companies beginning to sell shares on public stock exchanges, tech offerings have become synonymous with billion-dollar launches.
Given the sheer magnitude of IPOs based in the technology sector,...