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THURSDAY, NOVEMBER 26, 2009
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Tech IPOs Back, But With a Difference

Lessons of dot-com bust learned, startups wait until near-profitable

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(Newser) – Tech IPOs are back--but this time around, things are more subdued than in the heady days of the dot-com boom. These days, tech startups wait until they are profitable, or at least cash-flow positive, before making a public debut, MarketWatch reports. The strong performance of VMWare's August IPO has boosted investor confidence in the tech IPO market.

The tech market has seen little impact from the credit crisis, and only a recession is likely to dampen interest. Much-watched tech debuts include next week's IPO of Classmates Media, a social networking site that was profitable this year.  An IPO of higher-profile networking site Facebook, however, won't be coming until 2009 at the earliest.

Pedestrians pass by the New York Stock Exchange on Wednesday, Nov. 14, 2007, in New York. Wall Street traded flat Wednesday as investors, hopeful that the worst of the credit crisis is over, wavered on whether to extend Tuesday's huge advance. (AP Photo/Louis Lanzano)
Pedestrians pass by the New York Stock Exchange on Wednesday, Nov. 14, 2007, in New York. Wall Street traded flat Wednesday as investors, hopeful that the worst of the credit crisis is over, wavered on...   (Associated Press)
John Thain, center, CEO of NYSE Euronext, looks up at a screen at the opening of trading at New York Stock Exchange on Wednesday, Oct. 31, 2007 in New York. The Federal Reserve will announce later if it will cut interest rates, as many predict. (AP Photo/Mark Lennihan)
John Thain, center, CEO of NYSE Euronext, looks up at a screen at the opening of trading at New York Stock Exchange on Wednesday, Oct. 31, 2007 in New York. The Federal Reserve will announce later if...   (Associated Press)
Traders and Specialists work the trading floor of the New York Stock Exchange after the opening bell Monday, Dec. 3, 2007, in New York. Stocks pared early losses to trade narrowly mixed Monday after Treasury Secretary Henry Paulson said he is confident an agreement will soon emerge to help thousands...
Traders and Specialists work the trading floor of the New York Stock Exchange after the opening bell Monday, Dec. 3, 2007, in New York. Stocks pared early losses to trade narrowly mixed Monday after...   (Associated Press)
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