With stocks of tech startups underperforming on the bourses, here's a look at what caused the euphoria around them, and the subsequent collapse
“These new-age tech companies were not ready for an IPO.”
“The IPO game was merely to get an exit for existing investors at a good price; no one really cared whether the valuation will sustain. In fact, they were almost certain that it wouldn’t.”
“Investors were valuing the market opportunity, not necessarily the business.”
“These companies got listed at such expensive valuations only because of the growth potential, but now that’s a very big concern for the market because these companies have not been able to grow.”