By the Numbers: Are Tech IPOs Worth the Hype?

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.

Visualization type: Infographic

Clear

By the Numbers: Are Tech IPOs Worth the Hype?

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.


First published: August 25, 2020 (link)

Source files included: .ai, .eps, .pdf

Data source: Renaissance Capital, Ernst & Young, Janus Henderson, University of Florida Warrington College of Business

A basic license enables you to re-publish the infographic with minor changes (such as reformatting it size and shape, or updating information) while still attributing it to Visual Capitalist. Display of Visual Capitalist logo is required in a basic license. Translation is not permitted with a basic license.

An enhanced license enables you to re-publish the infographic, even with substantial changes being made to it. An enhanced license enables you to also translate the infographic into a different language. No attribution of the Visual Capitalist brand or logo is needed.

You may only translate an infographic by purchasing an Enhanced License.

License type

Basic – 2 credits, Enhanced – 3 credits