Exit Strategies –Acquisition or IPO
Tech Initial Public Offerings (IPOs) have a way of grabbing the public’s attention. In 2018 alone, Shopify, DocuSign, and Dropbox all made headlines by going public and are now trading at healthy valuations.
But many tech companies have quietly been choosing a different route this year, foregoing the high-profile IPO in favor of selling ownership in their company (acquisition).
From the GeekWire 200, an index of the most prominent Pacific Northwest tech startups, six companies have been acquired in the first half of 2018 alone. As tech behemoths like Apple and Google carry more cash on their balance sheets than ever before, acquisition is a possibility for an increasing number of tech startups.
We’ve identified 5 factors that are leading these emerging tech companies to choose acquisition over IPO.