IPO market expected to recover by 2024

 

VCs were initially expecting the IPO market to recover by the second half of 2023 but have now pushed their estimates to 2024, considering the current economic conditions and the unstable banking situation.  VCs use the Chicago Board Options Exchange's Volatility Index to judge the number of IPOs expected. For most of March, the index has been above 20, which is "a no-go for IPOs," per Cohen & Company Capital Markets' Jerry Serowik. The IPO window was briefly open between mid-January and February this year when the index dipped below 20.  Startups such as Instacart, Navan, and Stripe expressed interest in going public during the last year, but those plans did not materialize. Crunchbase points to previous volatile economic periods, including the dot-com bust and financial crisis of 2008-09, where the IPO market recovered within two years.  Over 330 unicorn startups in the U.S. went public in 2021.  In 2022, the number slumped to 80.  This year, the number is expected to fall short of 2022's totals.