Boutique Market Analysis (2021)

2021 was the year of Tech IPOs. Here is my analysis (short report).At least 110 Technology companies went public in 2021, constituting more than the previous three years combined*. This represents about 28% of all IPOs in all industries (Figure 1). Healthcare companies still account for the highest number of all IPOs, about 38% (150 companies).While there were a few large IPOs in 2021 in the Industrial, Consumer Services, Consumer Goods, and Financial (e.g., Rivian, Coinbase, Coupang, and Nu Holding) industries, the majority were in Tech (e.g., Roblox, Applovin, and Global Foundries) with a total market cap of ~ 620 billion (Figure 2), the highest ever with an 89% increase from the previous year (2020). For the first time ever, the total market cap of all companies (excluding blank check companies) that went public in 2021 in all industries exceeded $1.3 trillion at the end of the calendar year.It is worth noting that, on average, there is a significant decrease in returns (Figure 3), especially in Tech [1% vs. 71%], Healthcare [-20% vs. 96%], Consumer Services [-7% vs. 65%], Consumer Goods [-13% vs. 49%], and Financials [-6% vs. 41%] compared to the previous year (2020). On average, the best performing IPOs were in the Basic Materials industry, though it constitutes less than 1% of all companies. Furthermore, 3 out of the top 10 IPO performers were Tech companies, and to present the other side of the story, 3 out of the 10 worst performers were Tech companies as well.