The initial public offer of Twitter had sent a powerful signal to technology executives reviewing market floats of Silicon Valley startups. The message is full speed ahead.
Nearly a dozen private companies have been valued at above USD1 billion, with many of them are already in discussion with bankers. These companies, include Box, Square and Airbnb would most likely accelerate their IPO plans according to analysts and venture capitalists.
Box had chosen Morgan Stanley, Credit Suisse and JPMorgan for its IPO according to a Reuters report last Friday. The firm was pegged to be worth USD1.2 billion by private venture capital investors. There is still no clarity though if the company had turned or will become profitable in the future.
This lack of profit though was not considered a major issue against the microblogging site as it raised nearly USD2.1 billion in its IPO. WIth current market share hovering at USD41, the market value of Twitter is at USD22 billion.
Other possible IPOs include Square, an online payments company established by Twitter co-founder Jack Dorsey. It is now in the process of exploring a possible IPO next year according to the Wall Street Journal. It is projected that the company would turn a profit by 2015 and to this, the company did not provide a comment.
Another filesharing service, DropBox through its CEO Drew Houston, said that they are not in a hurry to do an IPO as there are still funds remaining from its latest fundraising round. In remarks made during a Techcrunch conference, he said, "I'm sure we'll go public at some point but fortunately it's not something we have to think about right now."
The market's acceptance of Twitter is surprising as this is normally a lull period in a season for the IPO market. Public offers often draw to a halt around the Thanksgiving holidays and restart by February of next year.
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