Tech IPOs collapse

Numerous IPO hopefuls are apparently being discouraged by the current low valuations of many technology stocks.

Mergers and acquisitions in the tech sector are being fueled by the current economic crisis, but IPOs are not. This is shown in a recent report by Capital.de. It states that the number of tech IPOs has fallen to an all-time low. According to the report, IPOs of German start-ups reached a low point in the first half of 2022.

According to the report, six start-ups went public in the second half of 2021. A downturn in the tech sector can also be observed internationally. Since the beginning of the year, the US tech index Nasdaq Composite has lost around 20 %. According to the report, this in turn is leading to lower valuations and more takeovers. The service provider Dealroom reports that the number of M&A agreements reached a new high in the first half of 2022. A total of 172 start-ups were acquired, an increase of almost nine percent compared to the previous half-year.