Remember The IPO? Didn't Think So

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.


NOW WATCH: Tech Insider videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at

Tagged In