Tech IPO gains slump showcases Silicon Valley’s overvaluations

After a recent string of lukewarm initial public offerings by tech companies, it seems Silicon Valley’s current valuations are missing the mark. 

Tech companies had held off from launching IPOs over the course of the past 21 months due to investors shying away from deploying capital into new projects due to rising interest rates in the United States.

In the past week, tech companies Arm, Klaviyo and Instacart ended the drought with their IPOs; however, after a brief spike in share price, all of the companies are currently trading near their IPO price. 

Now, it remains to be seen if Silicon Valley can bounce back from its burgeoning reputation as an over evaluator.