The market for small U.S. initial public offerings is “dead,” making sales of startups to larger companies more likely and reducing competition, billionaire investor Mark Cuban said Friday.
The absence of a threat from small, growing companies has led to larger corporations investing less in research and development, Cuban, 54, said on a panel sponsored by the Clinton Global Initiative in Chicago. While startups have plenty of access to funding, middle-market companies are facing a squeeze, Goldman Sachs president Gary Cohn said.
There have been 30 U.S. IPOs that raised between $5 million and $100 million in the past 12 months, according to data compiled by Bloomberg. In 1999, there were 392 such deals.