Any Bubble 1.0 dream was supposed to culminate in a public offering, where the markets showered riches on plucky entrepreneurs for their hard work and derring-do.
That’s all over, of course: Today you want a buyout and a short lockup. But in case any of you were still pining to go public, take a look at the Rennaissance IPO index, which tracks the performance of companies who’ve started trading in the past two years.
So far this year, the index is down 22.6%, compared to -12.3% for the S&P 500, -16.6% for NASDAQ and -8.78% for the Dow. And in February, the index was down 5.7%, and outperformed by the big three indexes again. The real moral: If you do get to sell, take cash, not equity.
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