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Illustration: Rebecca Zisser / Axios

2017 was a year of change and sluggishness for tech IPOs, against a backdrop of record-high stock market prices.

Why so complicated: The arrival of alternative mechanisms, rocky performances from some high-profile issuers (e.g., Snap, Blue Apron), the arrival of deep-pocketed SoftBank, and a renewed public market emphasis on profitability over growth.

Staying private longer

The JOBS Act of 2012 helped tech companies remain private longer by removing a rule that companies must begin publicly disclosing financial information once they had more than 500 shareholders. It's what effectively forced Google to go public, and would have had a similar impact on companies like Airbnb and Uber.

  • "I think the JOBS Act has done permanent harm to the IPO market," says Lise Buyer, founder of IPO consulting firm Class V Group, particularly because sky-high valuations for older companies leave less room for growth post-IPO.
  • SoftBank this year unveiled its $100 billion Vision Fund, which is by far the largest-ever investment vehicle aimed at private technology companies. In fact, it's the largest-ever private equity fund of any kind. It has made delaying going public easier for companies like WeWork, and even recently tried (but failed) to preempt an IPO for fashion subscription service Stitch Fix.
  • Snap's highly-anticipated March listing went smoothly, but its rapid stock price decline may have scared off some other consumer-focused tech companies that were considering IPOs of their own.
Control-Alt-IPO

Some bold IPO alternatives emerged this year, designed to alleviate the pain of listing, of being public, or both.

  • Venture firm Social Capital took public a special purpose acquisition company in September. While technically an IPO, the real goal was to acquire a tech "unicorn" that wants to avoid its own listing. "The whole process sucks," Social Capital's Chamath Palihapitiya told Axios at the time.
  • Spotify continues to plan for a direct listing, which would circumvent the standard Wall Street float. If successful, it could become a model that others will follow.
  • The Long-Term Stock Exchange emerged to help let public companies focus more on long-term goals than short-term shareholder capriciousness.
  • Several pre-IPO companies got acquired before anticipated listings, such as Cisco buying AppDynamics and Vista Equity Partners buying Datto.
Crystal Ball

A rise in interest rates could lower the amount of late-stage capital for private tech companies, as mutual funds and other large institutional investors shift their asset allocations, says John Tuttle, global listings chief at The New York Stock Exchange. That could create a flood of new issuers, or just better negotiating leverage for SoftBank.

Go deeper

2 hours ago - Politics & Policy

Trump to issue at least 100 pardons and commutations before leaving office

Photo: Mandel Ngan/AFP via Getty Images

President Trump plans to issue at least 100 pardons and commutations on his final full day in office Tuesday, sources familiar with the matter told Axios.

Why it matters: This is a continuation of the president's controversial December spree that saw full pardons granted to more than two dozen people — including former Trump campaign chair Paul Manafort, longtime associate Roger Stone and Charles Kushner, the father of Trump's senior adviser and son-in-law, Jared Kushner.

  • The pardons set to be issued before Trump exits the White House will be a mix of criminal justice ones and pardons for people connected to the president, the sources said.
  • CNN first reported this news.

Go deeper: Convicts turn to D.C. fixers for Trump pardons

Schumer's m(aj)ority checklist

Senate Minority Leader Chuck Schumer. Photo: Tasos Katopodis/Getty Images

Capitalizing on the Georgia runoffs, achieving a 50-50 Senate and launching an impeachment trial are weighty to-dos for getting Joe Biden's administration up and running on Day One.

What to watch: A blend of ceremonies, hearings and legal timelines will come into play on Tuesday and Wednesday so Chuck Schumer can actually claim the Senate majority and propel the new president's agenda.

The dark new reality in Congress

National Guard troops keep watch at security fencing. Photo: Kent Nishimura/Los Angeles Times via Getty Images

This is how bad things are for elected officials and others working in a post-insurrection Congress:

  • Rep. Norma Torres (D-Calif.) said she had a panic attack while grocery shopping back home.
  • Rep. Jim McGovern (D-Mass.) said police may also have to be at his constituent meetings.
  • Rep. Adam Kinzinger (R-Ill.) told a podcaster he brought a gun to his office on Capitol Hill on Jan. 6 because he anticipated trouble with the proceedings that day.