Many successful privately held companies are able to raise funds from institutional investors at attractive valuations and defer their IPOs. Almost $49 billion was raised in late stage private placements (also referred to as "mezzanine" private placements or "pre-IPO" private placements) in 2017, an 18% year-over-year increase. As in prior years, tech companies benefited most from this trend and accounted for 42% of dollars raised in these transactions. It is difficult to predict whether this year will mark a turning point in which we see some unicorns undertake IPOs. Our infographic provides a snapshot of the market for these transactions in the United States.
Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
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