A welcome return to blockbuster Tech IPOs in the US for Snapchat yesterday. +40% on its debut day and fund manager demand / FOMO not seen for several years.
Putting to one side Snap's controversial valuation (70x Revenue!) and faddy image, if this investor appetite can cross the pond to the UK's IPO markets, where tech demand has been subdued, it would be a welcome boost for the UK VC sector.
In 1999, the US tech sector boasted 371 initial public offerings. Last year there were 20. So prolonged has been the drought that investors drank deep at the market debut of Snap on Thursday. Cautious investors can tut-tut all they like. For now, the only reckless behaviour would be if the other dubious yet highly priced tech unicorns are not typing up their own prospectuses.