How big tech is killing new companies | مركز سمت للدراسات

How big tech is killing new companies

Date & time : Thursday, 28 September 2023

Christopher Akers

ig tech may be driving some chunky returns for investors, but one consequence of the dominance of the likes of Meta (US:META) and Alphabet (US:GOOGL) has been a significant drop in the number of new companies listing on the stock market.

General listing numbers have been impacted by the uncertain macro climate and higher interest rates. Rising rates have also meant bad news for venture capital (VC) investors, who help push businesses to list, meaning fewer and fewer initial public offerings (IPOs) have taken place.

But for nascent tech businesses, the dominance of big tech has been a key factor stopping them going public. If such companies do opt to list, they are then immediately competing for investor attention against businesses that have huge economic moats and market sway. Delivering the growth that such investors are used to is extremely difficult in this environment.


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