It's no secret that many of these companies aren't making money. Lyft, the most extreme example so far,— the most of any company in history. Arone says the venture capital investors who've helped build those companies can be patient about those kinds of losses, but Wall Street may not be.
Over the three years following their IPOs, Arone says, money-losing companies have lagged the market by 9.7% while their profitable peers have beaten the market by 7.9%. The tech companies going public today are both older and less profitable than those in the past, according to Michael Arone of State Street Global Investors."Eighty-four percent of companies looking to IPO today have no profits, up from 33% just a decade ago," he said.more than 100 privately held companies valued at $1 billion could go public this year