We Want You: Exchanges Step Up Game for VC-backed IPOs
May 15, 2014
As investors and bankers eagerly await possibly the largest IPO of all time, the two major U.S. exchanges are jockeying for the honor of housing Alibaba Group’s ticker symbol. While Alibaba’s choice would have probably been a no-brainer 10 years ago, the two exchanges, NYSE and NASDAQ, have become much more competitive in the tech-listing game in recent years.
Prior to 2010, NASDAQ listed, on average, more than 80% of all U.S.-based VC-backed IPOs. But in early 2009, NYSE, in a bid to prevent a raft of struggling companies from having to delist as a result of the financial crisis’ negative effects on stock prices, dropped some of its previously cumbersome listing requirements. This has led to a drastic shift in the share of tech listings on each exchange, with NYSE now collecting more VC-backed tech IPOs than NASDAQ.
For additional analysis on this shift and to view a table of notable listings on both NYSE and NASDAQ, click here.