Axios’ Dealmakers Series: The IPO Outlook
Event summary
On June 11, 2024, Cooley partner Rich Segal appeared in Axios’ Dealmakers: The IPO Outlook virtual event. During a “View From the Top” segment, Segal spoke with Fabricio Drummond, president of Axios New Ventures, about the current status of the US capital markets, macroeconomic conditions, trends from the recent slate of tech initial public offerings (IPOs) and the state of the private markets, along with providing advice for companies preparing for an exit.
Segal highlighted the improving state of the public markets, noting that equity capital markets activity and the IPO market both hit three-year highs in Q1 2024. While life sciences and biotech companies have made up a significant portion of the IPO volume this year, there have been some highly anticipated tech company listing as well – a trend Segal thinks will continue this year and next. Despite the optimistic outlook, Segal reiterated the importance of remaining realistic about what the return of the market will look like, remarking that we will not be going back to the 2021 bubble or a 0% interest rate environment. When considering the profiles of companies that are entering the public markets, Segal observed a shift from a “growth at all costs” mindset to one of strong unit economics and profitability – or a clear path to profitability. Segal also provided some valuable insight for companies that have IPO aspirations, advising that they stay focused on the business, get policies, procedures and personnel in place, and start to act like a public company before going public.
Axios also featured highlights from the segment in an article about the improving IPO market.
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