Dec
31
2009
Will the Tech Sector Drive IPO’s Again
© James & Vilija
Paul Kedrosky thinks the leading startups in the tech industry have either gone crazy or are about to issue IPOs. And last week TechCrunch's Erick Schonfeld came up with a "top ten" list of possible IPOs from the tech sector of 2010. Between them they have taken on almost two and a half billion dollars in investor funding. And the top of the list is Facebook…
If there is one company which everyone is looking towards for a new Netscape moment, it is Facebook. The company can pretty much go public any time it wants. It is already the fourth largest site in the U.S. and the world. Its last private common stock sale valued the company at $11 billion, which may or may not be rational. The key to a large public valuation will be whether Facebook can figure out how to turn all of that attention into advertising dollars. So far it is said to be on track to beat its $550 million revenue projections from earlier this year. A Facebook IPO would certainly create a halo effect for other tech offerings. Even if it doesn't go out in 2010, the prospect that it might could still help other companies go public as hungry investors grab what they can get.
Take a look at the rest of his list and see if you agree with his predictions. Personally, I hope he's right.
