Tech start-ups have raised a record $582.5bn from US IPOs this year amid a wave of listings according to data from PitchBook.
Start-ups that completed initial public offerings, direct listings or deals with special purpose acquisition companies raised $513.6bn in the year ending September 2021 according to data first published in the FT. A total of 93 listings were completed between July and September alone, the highest rate for a single quarter on record.
The rise in listings has helped to deliver strong financials for venture capital firms and their investors with the bumper takings from tech IPOs likely to justify a sharp jump in VC dealmaking this year, which has already exceeded last year’s total by more than 40 per cent according to PitchBook data.
It comes as this year tech start-ups including Coinbase and Robinhood have debuted in the US in multi-billion dollar listings.
In April cryptocurrency exchange Coinbase hit a market capitalisation of $76bn on its first day of trading during the largest direct listing of 2021.
Robinhood, the platform which allows retail investors to trade stocks and crypto using its flagship mobile app, increased its market cap to $32bn during its July IPO.