Fortune - USA (2019-06)

(Antfer) #1

TECH


UB


ER


LY


FT


SL


AC


K*


PI


NT


ER


ES


T


PA


GE


RD


UT


Y


$^3


.^0


BI


LL


IO


N


$^1


.^6


B. $ 28


1 M


.


$^1


93


M


.


$^7


9


M.


LARGEST LOSSES AMONG


2019ÕS IPO COMPANIES


(OVER THE TWO FISCAL YEARS


BEFORE THEIR FILINGS)


SNAP


$3.9 B.


2016 2017 2018


TWILIO


COUPA


BLUE APRON


CLOUDERA


DOCUSIGN


DROPBOX


NUTANIX


GREENSKY


PROFITABLE COMPANY


(BASED ON CUMULATIVE INCOME IN ALL YEARS SINCE IPO)


UNPROFITABLE


COMPANY


0


200


400


$600 $2.2


BILLION


$118.5 M.


$352.3 M. $312.9 M.


$1.4 BILLION $6.7 BILLION $5.9 BILLION


2019


RAISED AS OF MAY 10:


$13.0 BILLION


PAGERDUTY


LYFT


$2.3 B.


ZOOM VIDEO


PINTEREST


SUPER


LEAGUE


GAMING


$864 M.


$250 M.


$25 M.


$1.4 B.


UBER


$8.1 B.


*SLACK HAS FILED


FOR A DIRECT LISTING,


NOT AN IPO.


43


FORTUNE.COM // JUNE.1 .19


some underwriting process but also forgo-
ing any immediate proceeds.
In all, six U.S.-based, venture-capital-
backed tech companies had made a 2019
debut by FortuneÕs press time, reaping
$13 billion. Investors gave some, like Uber,
a cool reception out of the gate. In terms
of absolute numbers, it’s a relatively slow
year for tech IPOs. What makes this year
so remarkable, though, is the money that
individual companies are raising. On
average, they’ve collected $2.2 billion each
through their IPOs, more than in any of
the prior seven years.
In fact, Kathleen Smith, cofounder of
IPO-tracker Renaissance Capital, expects


a record-setting 2019. U.S.-listed IPOs
across all industries, not just tech, may
raise more than $100 billion this year,
eclipsing the $97 billion collected in 2000
during the dotcom bubble.
Like then, there’s a red flag to consider
when it comes to the current crop of tech
companies going public: They’re hemor-
rhaging cash. Combined, they lost $5 bil-
lion in the two years leading up to their
IPOs. And that’s not even including office
landlord WeWork, delivery service Post-
mates, and home hotelier Airbnb, which
are also eyeing the public market.
We’re only at the half-year mark, after
all. More unicorns are on the way.

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