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Even with one month left to go, the first quarter of 2014 has already seen more IPOs than the first quarter of 2013 (37 vs. 31). YTD proceeds are 27% higher than last year, despite a 31% dip in average deal size. It does not appear that activity will slow down in March, either: the number of initial filings in January and February is the highest it has been in over a decade. The pipeline is packed with health care and tech companies, which together represent 67% of filings over the last 90 days. 2013 had an impressive run with the highest number of IPOs since 2000, but 2014 could far outpace it if these trends continue.

YTD IPOs and initial filings, 2013 & 2014
as of 2/2820132014% Change
Deal size$5.5B$7.0B27%
Avg market cap at IPO$1.4B$0.9B(38%)
Average first day pop13%16%300 bps

The YTD Tech Snapshot
Health care companies represent 55% of IPOs to date (fueled by biotechs), but recent filings suggest that the technology sector is poised to pick up. While only three tech IPOs ( (NYSE:CRCM), Varonis (NASDAQ:VRNS) and (COUP)) have launched in 2014, new offerings on the horizon including King Digital, and The Rubicon Project should attract significant attention due to size and import.

SaaS and enterprise solutions represent the majority of companies in the IPO pipeline, with noteworthy advertising, mobile and e-commerce plays in the mix. The SaaS companies are no doubt encouraged by the performance of the IPO, Varonis (up 100%). Most of the tech companies are riding a wave of high growth and now hope to scale up operations by accessing public funds.

2014 Tech IPO Filers
CompanyProductUsed ForLTM

Growth (CRCM)*Internet community/marketpersonal care87%
Varonis Systems (VRNS)*enterprise data control softwaresecurity40%
GrubHub (NYSE:GRUB)Internet portalrestaurant orders67%
Sabre (SABR.RC)discount online travel agencyflights, hotels & cars4% (COUP)discount retail siteadvertising50%
The Rubicon Project (NYSE:RUBI)Internet marketplaceadvertising54%
Viggle (VGGL.RC)Mobile appadvertising702%
Resonant (NASDAQ:RESN)Mobile technologyincrease mobile bandwidthn/a
King Digital (NYSE:KING)Internet communityecommerce: mobile & social1,046% (JDC.RC)Internet community/marketecommerce: consumer95%
Borderfree (NASDAQ:BRDR)enterprise SaaSglobal ecommerce platform36%
Amber Road (NYSE:AMBR)enterprise SaaSglobal trade support21%
Rimini Street (Pending:RMNI)enterprise servicessoftware maintenance31%
Everyday Health (NYSE:EVDY)Internet communityconsumer health care info13%
Castlight Health (CSLT)enterprise SaaShealth care benefits212%
Paylocity (PCTY)enterprise SaaScompensation benefits40%
Q2 Holdings (NYSE:QTWO)SaaSfront-end banking software38%
2U (NASDAQ:TWOU)SaaSfront-end education software49%
A10 Networks (NYSE:ATEN)enterprise hardwarenetwork speed & security18%
Aerohive Networks (NYSE:HIVE)enterprise SaaS & hardwarenetwork wifi & security110%


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