The year 2019 may record a record number of technology projects that are preparing for the IPO. The last time such a thing happened was in 2000 during the boom of Internet companies. At that time, companies were able to raise more than $ 108 billion. Experts believe the ICOBox Global Research Center’s Global Research Center says that next year, it is likely to exceed this number several times, despite pessimistic forecasts in the digital currency market and global financial markets.
Companies such as Ober, Lyft, Zoom, Slack, Postmates, Instacart, CrowdStrike, Cloudflare, Airbnb, Palantir Technologies and Pinterest, which total about $ 250 billion each, may make a public offering in 2019.
For comparison: In 2000, AT & T Wireless and Palm were the largest publicly traded companies, with a combined total value of $ 89 billion. It seems that the giant technology companies today are likely to be more successful. However, according to Ernst & Young, in the first quarter of this year, the number of IPOs on global exchanges fell by 18% compared to last year. Comparing the same period in 2017, 80% of the IPOs conducted in 2018 failed in the United States.
Investors believe in large companies worth more than $ 1 billion. They are the only ones able to attract the most funding. While the total number of initial offerings declined, the amount raised in the first three quarters of 2018 rose 9% to over $ 145 billion, according to Ernst & Young. Daria Jenerlova, co-founder and director of ICOBox, says:
“The same trend can be seen in the digital currency market, the number of projects has dropped dramatically, but the amount of money they have produced has gone up. This tells us that the issues faced by traditional markets and digital currencies are quite similar. It seems that all investors today are interested primarily in the large projects carried out by a highly professional team, which has a good vision and well-established for the future development of the project “
The IPO also attracts interest in several digital currency projects. Companies such as Bitmain, Robinhood, Bitfury, Canaan Creative and Argo Blockchain have publicly indicated their intention to enter traditional stock exchanges. IBRC experts predict that this trend will be picked up by companies that successfully conducted their ICO operations in 2017-2018, has established a profitable company, and has proved that it was not a scam. The Generalo diaries said that this means that 2019-2020 may witness many stock rounds, which should be followed up in 2021-2022 by IPO.
According to the IBRC analysis, the boom in IPOs could fuel the classic asset market and, as is often the case, the digital currency sector will begin rapidly.
Here is one noteworthy fact that the ranks of large companies preparing for their initial public offerings do not actually include any startups in the traditional sense. The vast majority of established companies have been successfully operated in the market for several years, which has been a relatively long trade route. This factor may lead to a new rise in the digital currency market.
Over the past few years, the length of time between the launch of an IT company or an IT company and its initial public offering has increased. In 1999, it took four years on average, and in today’s environment it took 11 years. This may lead to the expectation that projects will begin to look for reliable but faster ways to attract financing to finance the development of parallel product lines or services. Anar Babayev, a leading expert at IBRC, explains:
“This is exactly where we can quickly help the digital currency market, which has begun to offer solutions such as STO and CTO. These new types of primary currency sales will allow exporters to launch faster and more timely fundraising campaigns, making them more transparent and reliable, giving them a clear advantage over ICO operations “
It is not easy to predict who will enter the digital currency market exactly. The IBRC team has no problem imagining that large and large companies such as Facebook, Apple, Amazon, Netflix and Google will enter the market for the following reasons: First, they lost 1.02 trillion dollars of total market value last week due to panic in stock markets where investors reacted to The US-China trade war is fierce. Second, all of them, with the exception of Netflix, have always shown interest in many of the solutions offered by the digital currency sector. It is often all it takes to take an important step in the future just at once.