The following is the Inventory of newly listed US stock technology companies in 2021 recommended by recordtrend.com. And this article belongs to the classification: Venture capital, Investment & Economy.
It is reported that this year, the bull market of newly listed technology companies in the US stock market has turned into a bear market. Recently, the stock prices of overvalued, high growth and loss making enterprises have continued to fall, resulting in a massive sell-off of newly listed technology companies in 2021.
Among the 55 technology companies listed through IPO (initial public offering), spac (Special Purpose Acquisition company) or direct listing this year, only Globalfoundries has a share price less than 20% lower than the highest point and has not yet entered the bear market range.
In other words, the share prices of the other 54 companies are already in a bear market range, that is, the share prices are more than 20% lower than the peak. Last week alone, 10 of these companies fell to this level. To make matters worse, the market value of 23 companies has shrunk by half or more compared with the high point, including Robin Hood and legalzoom. As of Monday’s close, the former had plunged 74% from its high in early August and the latter 58% from its high in July.
Even if investors try to choose a basket of stocks and build a diversified portfolio, they can’t find a safe haven. The revival IPO ETF fund, which tracks the shares of newly listed companies, has fallen 18% in the past three weeks, down 26% from its all-time high in February. The fund’s largest holdings include Modena, Uber, snowflake and zoom.
For the entire technology industry, rising inflation and higher interest rates make it more difficult for companies to obtain the support of external capital. In the process of investors turning to safe assets, employees and other insiders who have not yet passed the post IPO lock up period are the most seriously affected. The lock up period is usually 6 months after the company’s IPO.
For example, the lock up period for rivian insiders’ holdings lasts until mid-2022, and the share price of the electric vehicle manufacturer has fallen 35% since mid November. Salesforce’s competitor freshworks has fallen 50% from its peak last month, and the company’s insider shareholding will be locked in early next year.
Rivian’s current share price is still much higher than the IPO price of $78, but the recent slump has led to the break of freshworks. Of the 10 most valuable technology companies listed in the United States this year, only 6 still have shares higher than the IPO price or the first trading price of direct listing. Breaking companies include coinbase, uipath and Robin Hood.
Gitlab, a cloud computing software company, fell 35% from its November high. The company’s employee stock ownership lock-in period also ends in early 2022. On Monday, gitlab’s share price fell another 9% in after hours trading, which is only slightly higher than the IPO price. Gitlab reported better than expected revenue in the first quarter of listing, but still failed to stabilize the stock price.
For other newly listed companies, ESOP has no lock-in period. This year, six technology companies listed in the United States through direct listing, which means that previous investors can immediately sell their shares, but the company cannot increase its cash through such listing.
Although only a few companies supported by venture capital will choose to be listed directly, this year, the way of direct listing is getting more attention. Before 2021, only four well-known companies, including spotify, slake, Palantir and asana, chose this way of listing. The companies that chose this way this year include roblox, coinbase, squarespace, zipprecruiter, amplitude and WarBy Parker. The share prices of these companies have fallen by 20% to 50% from their highs, but there is no lock up period for employee stock ownership. They can sell their shares from the first day of listing and realize at least part of their shares.
For public investors, there are also problems with the listing of technology companies through spac. Metromile, an insurance technology company, merged with a spac in February to achieve listing, but its share price has fallen 89% from its high point. Metro’s technology allows car drivers to pay for car insurance by mileage instead of paying monthly or annual fees.
Among other companies listed through spac, the share price of nextdoor, a social network, fell 47% from its November high, and the share price of Sofi, an Internet credit service, fell 44% in 10 months. Buzzfeed, a digital media company, just completed its merger with spac on Monday, but its initial performance was poor, and its share price fell 11% on the first day.
The repricing experienced by the technology industry may affect the listing of the remaining companies this year and may last until 2022. Hashicorp, a cloud computing infrastructure software company, plans to go public this week. According to the initial pricing range, the company’s target valuation is about $13 billion. However, after last week’s sharp drop in technology stocks, investors may pay more attention to the company’s recent quarterly loss of $22 million, which is further expanded from $9.3 million in the same period last year.
According to the latest prospectus released on Monday, samsara will go public next week, and its technology will help connect physical products to cloud computing. The company is valued at approximately $11.5 billion. In the most recent quarter, samsara’s loss decreased to $32.4 million from $54.3 million in the same period last year.
More reading: PwC & CB insights: in 2018, the total financing of U.S. start-ups was $99.5 billion. Investgame: in 2020, the investment in the game industry reached $33.6 billion, of which China accounted for 27%. Gartner: the technology industry ushered in a new wave of mergers and acquisitions. In 2022, the transaction scale will set a new record. Tesla’s market value will reach $116.945 billion, surpassing Boeing to become the highest industrial company in the United States. Savills: in the first half of 2020 Global real estate investment decreased by 33%. CrunchBase: 142 unicorns were born in 2019. Inventory of the world’s top 10 semiconductor M & A transactions in 2019. Celestica financial report: the scale of Celestica Yubao in 2018 was RMB 1.13 trillion, and the investment income was RMB 50.9 billion. Deloitte Consulting: review and Prospect of IPO markets in mainland China and Hong Kong in Q1 2019 (download attached). Japan economic news It is estimated that 40% of the global net profit in 2018 will be created by American enterprises. The investment amount of US venture capital reaches US $130 billion to a record high. The Antarctic Circle & Eye search: 2019 Tencent alumni business graph CrunchBase:2018 the number and amount of US venture capital in PitchBook:2018 exceeded the “interconnected bubble”. The highest value of the times. In 2018, the financing amount of private space companies reached US $3 billion. In 2019, Netease Youdao submitted the full text of the US SEC roadshow IPO document
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