Investor Insight: Exits! 2022 Could See Huge Number of IPOs From Venture-Backed

July 14, 2022

Exits—they can be hard to pull off. When investing in early-stage companies, it can be difficult to imagine that, one day, we may not own any shares of one of our portfolio companies. But ultimately, that’s our goal. Because that’s the only way we can create real wealth for our shareholders (and ourselves). To accomplish this, we either sell the whole firm at once, or sell it off in tranches through the public markets, primarily in the form of an initial public offering (IPO).


2021 was such a good year for Venture Capital exits, it’s hard to imagine anything topping it. But new data suggests 2022 may be even better.


According to a study from private market research firm PitchBook*, a huge number of Venture Capital-backed companies are primed for an IPO this year. Almost 700, in fact. That’s more than triple the number that went public in 2021, and their median value of $630.8 million rivals that of last year’s companies. PitchBook’s report suggests this is the result of a “decade-long buildup of venture-backed startups” that has led to a critical mass of eager investors. For many of these companies, an IPO is especially attractive at this time, as their already high valuations may grow even more once they become a free-trading public company. A “bad” structure for a startup may become a desirable one at specific stages, and a great way to realize the full potential of an investment.


Of course, this all bodes very well for us. We’re specifically seeking out private startups that have the potential to completely transform their industries and produce “Seismic” returns. We seek them out, acquire them, nurture them, grow them, and eventually, exit.


For more information on investing in Venture Capital through Seismic—including portfolio diversification, tax advantages, and our selection criteria—please visit our offering page and read through our SEC-qualified Offering Circular.

*Chief Investment Officer’s coverage of the report.