ANALYSIS
Silicon Valley’s obscure unicorns could boost 2017 IPO market
Snap’s share issue may be the biggest in the tech field in 2017, but those of a dozen obscure software firms could be as important in thawing a frozen IPO scene
Social media firm Snap may be the highest profile tech IPO planned for 2017, with the potential to raise billions. But more than a dozen expected stock offerings of relatively obscure software firms targeting business customers — little-known names such as Apttus, Tintri and Okta — could be just as important in thawing a long-frozen IPO market, according to investment bankers and advisers who work on IPOs. Such firms are a "leading indicator" of broader investor demand for market debuts, said Justin Smolkin, head of Americas technology equity capital markets at UBS Group. "They tend to be viewed as cream of the crop, and where investors make the most money," he said. Such enterprise software companies generally sell their services through subscriptions that produce reliable revenue streams. They aim to sign contracts lasting several years, giving investors more predictable returns than many Internet or consumer-oriented companies that depend on advertising or high volumes of individ...
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