Tech IPOs Back, But With a Difference

Lessons of dot-com bust learned, startups wait until near-profitable
By Jane Yager,  Newser Staff
Posted Dec 5, 2007 11:10 AM CST
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)
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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.