I guess it’s true that venture capitalists tend to be more optimistic than the general population. During a week that saw key market indices go up and down as sharply as the teeth on a rip-saw blade, most peHUB readers believe the IPO window is only temporarily closed.
Thirty-three percent of those who took our survey say the window will reopen “soon” and that the market turmoil is a “temporary setback.” (See chart below.) For those who expect the window to be closed for any length of time, most (23%) believe it will reopen in the fourth quarter. Another 18% say it will be open by Q1 2012 and 13% say it won’t reopen till Q2 of next year. Just 10% of those surveyed believe the IPO market won’t revive until after 2012.
The most popular answer to our second question doesn’t seem to jibe with the optimistic responses to question No. 1. (See chart below.) We asked, “What needs to be done to re-open the IPO window?” Most of you (67%) responded: “The President and Congress must pass a comprehensive plan to create jobs and get the U.S. economy moving again.” Given the partisan bickering that resulted in an 11th-hour deal on the debt ceiling, it seems overly optimistic to believe that the Obama Administration and Republicans in Congress will get together any time soon — or ever — to come up with a detailed plan to revive the economy.
The next-largest group (52%) say that for the IPO window to reopen, “The European Union must bring stability back to international markets,” while 26% said regulations such as Sarbanes-Oxley and Dodd-Frank need to be modified or dumped. Less than 19% said that another round of qualitative easing (i.e. QE3) from the Fed was what was needed.
(Click on the following charts to enlarge them.)