Beyond what’s happening now, the market turmoil could have a big impact on the 2019 IPO class.
The most valuable venture-backed companies have all indicated that they’re likely to debut next year. Uber and Lyft have hired bankers and reportedly filed confidential papers to go public. Airbnb, Slack, Stripe and Palantir have all hinted at potential offerings in the next 12 months.
As of early December, J.P. Morgan Chase hadn’t seen any of its clients alter their timing or expectations, Noah Wintroub, the bank’s vice chairman and head of technology investment banking, told CNBC at a conference.
“We’ll continue to see what happens in 2019, what happens on a macro basis, what the market is doing, and if the market is super volatile, people may change their plans,” Wintroub said at the time.
A healthy IPO market is important for tech workers across the Bay Area, who often sacrifice high salaries for equity in their companies. Given the lofty private market valuations that software and internet companies have commanded in recent years, they need to go public and see their stock pop in order for many of their employees to reap big rewards.