California officials are sounding the alarm after recent statistics showed that fewer corporate and start-up activity in the state was leading to a decline in tax revenue, according to a report by Bloomberg News.
This year, just nine companies based in the state had held initial public offerings (IPOs), which is when a company first lists shares for sale on the stock market – considered a milestone in its growth after strong activity and high valuation, the report revealed.
In 2021, California – whose start-up ecosystem in ‘Silicon Valley’ is considered the most prodigious in the world – saw 81 companies conduct IPOs, making 2022 a year of a nine-fold decrease.
Moreover, the value of these IPOs was far lower than in the past, raising merely $177 million, or 2% of the total amount of money raised by U.S. companies that went public in 2022.
Moreover, the value of these IPOs was far lower than in the past, raising merely $177 million, or 2% of the total amount of money raised by U.S. companies that went public in 2022.
By contrast, in 2021, California’s share of the revenue generated by IPOs was 39%, by far the largest of any state. READ MORE...
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