June 17, 2016

The Private Hibernation Of Unicorns

   June 17, 2016

The Private Hibernation Of Unicorns

Trends_Amongst_Unicorns_Unicorn_created_(global)_Unicorn_IPOs_(US_exchanges)_TMMChart.png

Trader’s remarks:

Traditionally, private companies dream of going public but many of those companies want valuations that no IPO investor would swallow. Also, only a third of the tech companies that went public in 2015 are trading higher than their IPO price, meaning that many investors are already feeling some pain in their portfolios and are unwilling to take on new risk. So rather than taking a cut in price, Unicorns have decided to hibernate in the private market, where some continue to get inflated valuations.

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