A VC Explains Why Enterprise IPOs Have Been So Hot
On Friday, two of them had very successful initial public offerings: Tableau Software's stock was initially priced at $31 a share, rose 60% that day, hit a high of $59 on Monday and was today still trading at over $50.
Marketo rose nearly 78% on its first day of trading from the opening price of $13 to over $23 and today was trading at ~$25.
This follows big hit
Why are investors so gung-ho on enterprise, when consumer stocks like Zynga and Groupon are struggling?
Asheem Chandna, a venture capitalist specializing in enterprise at Greylock Partners explains:
"It's because these markets are real. The IT market is a multi-trillion-dollar market," he told Emily Chang during an interview for Bloomberg West TV. "Enterprises spend real dollars" and have big IT budgets.
Plus, he says, this is only the beginning: "We're still very early in the move towards the cloud and towards mobile."
Those are two technologies that are radically altering how enterprises deliver tech to their employees.
Chandra isn't predicting the death of the current crop of big enterprise players, like Oracle, SAP, or Salesforce.com. Those companies will acquire plenty of these startups and keep on ticking.
But he does see the new players taking some customers away from them. He predicts at least a few of these young companies are destined to become billion-dollar companies on their own.
That's obviously what investors see, too.
- Uncertainty over election results may keep market volatile: Experts
- 7 cold destinations in India to escape the summer heat in May
- WhatsApp working on feature that will restrict users from taking screenshots of profile pictures: Report
- Having AI knowledge might increase your chances of landing job interviews, UK study finds!
- After one death due to West Nile Virus in Kerala, Tamil Nadu deploys Mobile Medical Teams in Coimbatore to check disease spread
- Nothing Phone (2a) blue edition launched
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market