Happy Monday, Readers. As we come into the final weeks of the year, let’s look back on how 2016 fared for the technology industry. Unfortunately, 2016 will go down as one of the worst years for tech public offerings since the 2009 recession.
According to Renaissance Capital, there were only 20 IPOs in 2016, down from a disappointing 29 in 2015. 2009 was ultimately the worst year, with just 14 tech companies that went public. There are many contributing factors to such low performance, first being that stocks plummeted after fears of falling oil prices at the start of the year. In June, the market took another hit with the news of Brexit. And finally, the tumultuous U.S. election season towards the later half of the year ultimately made 2016 an unfriendly year for rising tech companies.
That being said, those that did go public performed fairly well, such a Twilio (TWLO) and Nuantix (NUTX). And with startup giants like Snapchat weighing public offerings for next year, the only place 2017 can go is up.