Tech IPOs Deal Prices to Rise

After a vigorous year of dealmaking in the tech sector, 2015 is shaping up to be even more robust, according to a report from CB Insights. The data analysis firm noted in its “IPO Pipelines Report” that average deal prices are expected to jump as well. In 2014, the average deal price in fund-raising for seed- and later-stage tech firms was $101 million. This year CB Insights expects that average to climb to $111 million. There are more than 580 tech companies in the initial public offering pipeline, according to the report, with $24.7 billion having been raised in 2014 alone. By contrast, the consumer products and services sector has seen significantly less money raised — $1.6 billion is in the pipeline — but has proportionally more deals: 405 total to date. And within that sector, the clothing and accessories segment has 50 deals totaling $219 million. The number of deals represents each round of funds raised. The company also noted “hedge funds, mutual funds, corporates, sovereign wealth and private equity investors” has piled into the market and that the “abundance of nontraditional investors” is pushing up average deal prices. Moreover, the number of $1 billion-plus valued companies is up 160 percent over

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