Nothing undermines the IPO market like a market sell down. If the current one does not abate or gets worse into 2019, each company will face a tremendous barrier to its plans. That in turn, will mean they need to operate as private companies and curtail losses so they do not run low on the money they have raised from venture capitalists.
Market troubles mean that the venture capitalists who put hundreds of millions of dollars into start-ups may never get their money back. Since this is the primary goal of most VC deals, the only other exit is a sale of the companies blocked from the public markets.
https://247wallst.com/investing/2018/12/09/stock-market-collapse-threatens-lyft-and-uber-ipos/
Submitted December 09, 2018 at 09:43AM by caliphornian https://ift.tt/2G8Chw2
