Market Overview

The Tech IPO Market Hasn't Been This Weak Since The Financial Crisis

The Tech IPO Market Hasn't Been This Weak Since The Financial Crisis

There have certainly been a handful of exciting tech IPOs in 2016. Investors have piled into names like Line Corp (ADR) (NYSE: LN), Twilio Inc (NYSE: TWLO) and Nutanix Inc (NASDAQ: NTNX). However, overall it has been an extremely slow year for tech IPOs.

According to Renaissance Capital, the IPO market as a whole is way down in 2016. Through the first three quarters, there have been 85 IPOs this year, more than 40 percent less than the 145 IPOs at this time last year.

The post-crisis IPO market peaked at 275 in 2014 before falling to 170 in 2015. This year’s total has the IPO market on pace to register its lowest annual total since 2009.

Related Link: What Are Wall Street's 'Cult' Stocks? 

The good news for IPO investors is that most of 2016’s weakness so far came at the beginning of the year after the S&P 500 started off 2016 with a historically bad January. No company wants to go public in the middle of a stock market crash, so there were only eight total IPOs in Q1 of this year, including zero IPOs in January. January marked the first time the market has gone an entire month without an IPO since September 2011.

In the most recent quarter, there were 33 IPOs, only one less than Q3 of last year.

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