Summary:
Turo has been trying to go public since 2021, but market volatility has delayed its plans.
Recent tariff announcements and inflation have created uncertainty for tech IPOs.
The stock market soared after Trump's election, leading to high expectations for IPOs.
Investors have reassessed their bets on U.S. tech due to the rise of DeepSeek.
Despite challenges, IPO activity is 14% higher this year compared to last year.
The Tech IPO Dilemma
Turo, a car rental start-up based in San Francisco, has been attempting to go public since 2021. However, a volatile stock market in early 2022 forced the company to postpone its listing. Recently, Turo decided to pull its listing entirely, with CEO Andre Haddad stating, "Now is not the right time."
For many months, investors had high hopes for a wave of initial public offerings (IPOs), particularly following President Trump's election victory in November, which was expected to usher in a pro-business and anti-regulation era. This optimism led to a surge in the stock market, with expectations of significant deal-making on the horizon.
Unfortunately, the administration's tariff announcements and rapid changes in regulations have created market volatility and uncertainty. Worsening inflation has triggered market jitters, and the emergence of the Chinese AI app DeepSeek last month caused investors to reassess their optimistic views on U.S. tech, resulting in a drastic sell-off of A.I.-related stocks.
The Shift in IPO Landscape
These factors have significantly affected the landscape for IPOs. Phil Haslett, founder of EquityZen, remarked, "The calendar just went from fully booked to being wide open in a span of like three weeks."
Despite these challenges, the pace of public offerings this year is currently ahead of last year's figures. Companies have raised $6.6 billion from listings, reflecting a 14 percent increase compared to the same time last year, according to Renaissance Capital, which specializes in IPO-focused exchange-traded funds.
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