Tech IPOs Flourishing in the U.S. and China, not Europe. Here is why

Tech IPOs Flourishing in the U.S. and China, not Europe. Here is why

Europe struggled to produce notable Initial Public Offerings (IPOs) compared to the U.S. and China, where big tech firms such as Palantir and Ant Group listed their shares, according to CNBC.  Europe faces scalability problems as the continent produced only 14% of the so-called “unicorn” companies while others fail to get past the later growth stages.

  • Europe needs more tech-listings to create a “virtuous circle” of more listings and investors keeping an eye on European tech stocks.
  • European tech investors are optimistic of “a very healthy pipeline of IPO opportunities across the board”-Jan Hammer, Index Ventures partner. 
  • Europe produced just 26 venture capital-backed IPOs this year, fetching only $ 6.7 billion compared to 70 and 92 in the U.S. and China, which generated $118.19 billion and $72.8 billion, respectively 
  • European start-ups struggle to succeed in later stages, posing challenges of talent acquisition and raising funds. 

Most European tech companies are choosing to go public in the U.S. and the continent has missed out on a variety of overseas listing approaches. Renaissance IPO ETF is up 80.24% this year.

Leave a Reply