Tech IPOs are the buzzword in the real estate investment world today as they represent an unprecedented opportunity to cash in on the Internet’s next big wave…and it is a big one. As the traditional vacation season ends, first private offerings are aggressively stamping their way forward, making 2021 one of the busiest years in history for IPOs, led by tech startups. And the pace isn’t slowing down even as we speak. Recent reports indicate that over $2.5 billion has been raised in IPOs this year alone. That money will be spread around a huge range of sectors pharmaceuticals leading the pack with more than a third of all financing raised but more companies are gearing up for their own coming of age…or should I say, their inevitable tech IPO moment.
How will start-ups take advantage of this increased public interest in IPOs? Well, for starters, the IPO boom is taking the nation by storm. All across the country, newspapers and television stations are publishing daily reports highlighting companies that plan to debut their newest offerings. It’s almost as if investors everywhere are cheering for the return of tech IPOs to the stock market.
So what does this mean for start-ups looking to ride the IPO wave to success in the future? First, the timing is perfect. The IPOs of today are on track to double their value in the next two years. And while the timing for this sort of funding is important, the impact it can have on your business is immeasurable. In the last year alone, the tech ipos of publicly traded companies earned more than $3 billion on investment, and that number is only going to rise as the year progresses.
But beyond that, what else can you do to take advantage of this growing trend? Well, besides getting your feet wet in the public markets, tech IPOs now have the ability to jump onto other types of exchanges. For example, you can look at the Utility-traded markets (utilities like AT&T, Wal-mart, etc.) to see how they’re doing. They may already be planning an IPO in the future, so that means they have a leg up on other start-ups that don’t have this luxury.
Beyond that, you also have to watch out for the tech IPOs that are rumored to be coming in the next five years. Some analysts predict that Google could introduce another browser, possibly Chrome, in five years. Apple is also said to be working on a smartphone. In addition, Cisco and Microsoft are reportedly working on new networking technologies, including Windows 10 S and Windows Mobile.
If you’re already invested in the stock market, or if you’re looking to diversify your portfolio, now is the time to take advantage of tech IPOs to make money. If you’re holding penny stocks, you should know that prices can jump very quickly. Even though the gains on these small cap stocks are low, you should still want to get into them. The upside is that the volatility may not last very long, so you could have a large gain before it drops again in the next couple years.