2019, Red Hot IPO Year for Silicon Valley

There are nearly a dozen tech Initial Public Offerings (IPOs) planned for 2019, the tech companies are scurrying to generate immense wealth before the expected 2020 recession. While many industries are seeing financial problems. pre-IPO tech companies are being heavily valued by Wall Street traders and financial analysts. Most of these companies are Collaborative Economy companies, an industry I covered with great detail over the last half decade. These online marketplaces enable the buying and selling of assets (they don’t own) between individuals. Since they don’t own most of the assets, they have great upside –and little downside. These tech companies are the darlings in business, as they prepare for a massive set of IPOs that could result in over $250 Billion in material wealth as their shares are released to the open market. Here’s a quick breakdown of their anticipated valuation of this year’s launches: 


Silicon Valley Tech Companies 2019 Expected IPOs

Company Industry Expected IPO Valuation (Billions $)
Lyft (March IPO) Collaborative Economy 21
Uber Collaborative Economy 120
Airbnb Collaborative Economy 31
Palantir Data Analytics/AI 41
Pinterest Social 12.3
Slack Enterprise Collaboration 10
Postmates Collaborative Economy 1.2
PoshMark Collaborative Economy 1
Robinhood Financial Services 5.6
Zoom Communications 1
PagerDuty Cloud Computing 1.7
Rent the Runway Collaborative Economy 1
SUM $246.8 Billion 

 

What it means: 

  • In 2019 expect to see these 6,000+ newly minted millionaires, most from Silicon Valley & San Francisco.
  • In about two years, 2021-2023, many of these employees will cut ways with their employer, ready to start new companies, or angel invest in the local startup community.
  • Despite the other industries to be in an expected recession, tech startups may still be seeing funding.
  • Who wins: Entrepreneurs, tech workers, VCs, LPs, Silicon Valley real estate owners, and developers.
  • Who loses: Renters seeking to buy a home, non-tech workers, Silicon Valley traffic.
  • More innovation will come out of Silicon Valley, as additional funds are injected into the ecosystem.

Hat tip Joely Urton for market knowledge. Photos used via Pexels

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