Todd Kimmel's post, Advanced Technology Ventures, warns that the IPO market will basically remains idle for the next 18 months.
"The IPO window is closed and likely won’t re-open until 2010."
However this downturn will profit a few players in the markets, and these are the very small companies. The reason is that early-stage companies have very small burn rates and can more easily afford focussing on catching up or developping new technologies, while the medium size startups have to downsize and struggle to support an existing customer base.
As Kimmel's puts it: "This is not good news for anyone, except early-stage companies that plan to have their heads down for the next year or more working on proofs of concept and reducing technology risk. Those companies will be in a better position than those in need of capital to scale."
So are we going to see a few Davids out-smart Goliaths in the next 18 months?
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The bad news is that the second quarter of this year had an IPO market just slightly above the range, but the good news is that for all the four consecutive quarters before it was below. And for the month of July we are set to come in below again as well (at 0.7).
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valrossie
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