2019: Year of the Unicorn Lives Up To The Hype
July 31, 2019 | Blog

2019: Year of the Unicorn Lives Up To The Hype

This year was long expected to break records in terms of IPO activity and six months into it we thought it prudent to check just how accurate those expectations were. To normalize mid-year results, we looked at average monthly statistics over the past decade, both by volume and proceeds – here’s what we found.

While deal volume has not matched the highs of 2012, 2013 and 2014, average proceeds from IPOs have far outpaced any time over the past ten years. The peak in 2012 experienced an average of just over $1.6 billion in IPO proceeds a month while 2019 to date has averaged over $2.4 billion. More impressive still, total IPO proceeds YTD are nearing $15 billion. This pace is on track to surpass 2012’s $19.7 billion raised– all of this activity despite a frozen IPO market in January due to the 35-day government shutdown. Of course, the second half of the year may not match the barrage we saw in the first half, yet there are notable companies, including The We Company (WeWork) and Postmates, that have filed confidentially.

To drive the point home further, these formally private tech companies have generated exits that have benefited their employee shareholders, private investors, and visionary founders vis-a-vis liquidity. Private growth, as an asset class, appears to be steadily maturing for those stakeholders. We, of course, must mention the fact that on a price per share basis certain companies, like Pinterest, saw down-round IPOs. Nonetheless, the innovation economy has so far cultivated a number of notable, multi-billion dollar exits in 2019.

Beyond the headline-grabbing activity of companies jumping into the public market, the performance of those companies from IPO pricing has generally tracked the bull market performance of 2019 to date. Whether attributable to the broad market rebound after the near-bear end to 2018 or otherwise, these companies have generally seen capital appreciation year-to-date. Collectively, they are up an average and median of 77 and 35 percent, respectively. Of course, these results are prone to change at any moment, but the story thus far in 2019 has been largely positive. We’ll eagerly be tracking the second half of the year and will report back on our findings.

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This article does not constitute an offer to provide investment advice or service. Registered representatives of SharesPost Financial Corporation do not (1) advise any member on the merits or prudence of a particular investment or transaction, or (2) assist in the determination of fair value of any security or investment, or (3) provide legal, tax, or transactional advisory services.

Securities referenced in this article may be offered by SharesPost Financial Corporation, member FINRA/SIPC. SharesPost Financial Corporation and SP Investments Management are wholly owned subsidiaries of SharesPost, Inc. Certain affiliates of these entities may act as principals in such transactions.

Investing in private company securities is not suitable for all investors. An investment in private company securities is highly speculative, involving a high degree of risk, and investors should be prepared to withstand a total loss of your investment. Private company securities are also highly illiquid and there is no guarantee that a market will develop for such securities. Each investment also carries its own specific risks and investors should conduct their own, independent due diligence regarding the investment, including obtaining additional information about the company, opinions, financial projections and legal or investment advice.

Accordingly, investing in private company securities is appropriate only for those investors who can tolerate a high degree of risk and do not require a liquid investment.

SharesPost, the SharesPost logo, My SharesPost, the SharesPost Index, and SharesPost Investment Management are all registered trademarks of SharesPost, Inc. All other trademarks are the property of their respective owners.

Copyright SharesPost, Inc. 2020. All rights reserved.

PLEASE READ THESE IMPORTANT LEGAL NOTICES & DISCLOSURES

This article does not constitute an offer to provide investment advice or service. Registered representatives of SharesPost Financial Corporation do not (1) advise any member on the merits or prudence of a particular investment or transaction, or (2) assist in the determination of fair value of any security or investment, or (3) provide legal, tax, or transactional advisory services.

Securities referenced in this article may be offered by SharesPost Financial Corporation, member FINRA/SIPC. SharesPost Financial Corporation and SP Investments Management are wholly owned subsidiaries of SharesPost, Inc. Certain affiliates of these entities may act as principals in such transactions.

Investing in private company securities is not suitable for all investors. An investment in private company securities is highly speculative, involving a high degree of risk, and investors should be prepared to withstand a total loss of your investment. Private company securities are also highly illiquid and there is no guarantee that a market will develop for such securities. Each investment also carries its own specific risks and investors should conduct their own, independent due diligence regarding the investment, including obtaining additional information about the company, opinions, financial projections and legal or investment advice.

Accordingly, investing in private company securities is appropriate only for those investors who can tolerate a high degree of risk and do not require a liquid investment.

SharesPost, the SharesPost logo, My SharesPost, the SharesPost Index, and SharesPost Investment Management are all registered trademarks of SharesPost, Inc. All other trademarks are the property of their respective owners.

Copyright SharesPost, Inc. 2020. All rights reserved.