IPO Market Stays Quiet as Top Unicorns Turn to Secondary Sales for Liquidity
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VCs surveyed expected the IPO market to reopen in 2024, but with only 2 weeks left in Q1, few IPOs are materializing.
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While markets may still open later this year, secondary investors said even a Reddit IPO hit likely won't trigger an IPO floodgate.
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Top expected IPOs like Databricks and Stripe have signaled they likely won't IPO in 2024.
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Instead, VCs and investors are increasingly turning to secondary markets for liquidity, with over $100B in transactions in 2021.
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Secondary markets allow companies like Stripe to provide investor liquidity without a premature IPO, reducing pressure on public markets.