How Valuations of IPO Hopefuls Have Plunged From Pandemic-Era Heights

Valuations of startups that had been looking toward an initial public offering have fallen as much as 93% from their most recent private fundraising rounds, according to estimates by Caplight, which tracks trading of private-company shares on secondary markets. Caplight’s estimates are included in The Information’s newly updated Tech IPO Tracker.

Last year, The Information identified 34 startups that appeared to be headed toward IPOs. But rising interest rates and plunging equity values dashed many companies’ IPO hopes. Now some companies are considering testing the waters. But startup funding remains at a trickle, and many young companies are cutting costs and laying off employees. The failure of Silicon Valley Bank in March further unsettled the ecosystem.