Tech founders are shunning IPOs after extended market lull, survey finds

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Only 15% of the 1,550 entrepreneurs surveyed by Techstars said their long-term goal is an IPO.

There was some activity in March when Reddit went public, but the market has been mostly muted since and shows no signs of picking up this year.

Silicon Valley is known for producing tech businesses that start in garages and turn into massive publicly traded companies ubiquitously known across the globe. Frompublished this week from startup accelerator Techstars. Of the 1,550 entrepreneurs surveyed by Techstars, only 15% said their long-term goal is an IPO. That's down from 16% a year earlier.

For 34% of entrepreneurs surveyed, the preference is to get acquired by a publicly traded company, down from 36% last year, while 30% indicated their goal is to remain private or independent, up from 28% in the prior report.The trading floor of the New York Stock Exchange prepares for the social media platform Reddit's initial public offering on March 21, 2024 in New York City.Feeling out of the loop? We'll catch you up on the Chicago news you need to know.

However, in comparison to the pre-2022 stretch, it's been mostly quiet for new tech companies on Wall Street. Uncertainty surrounding the presidential election in November is pointing to a dearth of deals for the remainder of the year. "We have the upcoming election, which is not helping the market in H2," Athena Theodorou, head of software banking in the Europe region at UBS, told CNBC's"Squawk Box" on Wednesday."We do expect the market to remain muted in H2," Theodorou said, though she said that in Europe the IPO market has started to show signs of life.SoftBank plans to raise $1.

 

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