How many tech IPOs make a profit on debut?

Apparently, not that many, with revenue streams taking precedence over profit.

After the dot-com bust, investors generally wanted to see two things from companies before they hurled down the IPO gauntlet -- millions of dollars in yearly revenue and preferably a profitable balance sheet.

Now, in 2012, the tech company IPO sphere is diluted. The current market seems geared towards getting technology giants, including Facebook, to launch IPOs on the basis of revenue streams, rather than profit.

According to IPO Dashboards, things certainly have changed. Only 27 percent of technology companies that went public in 1999 were considered unprofitable. In comparison, approximately 73 percent of tech companies today aren't profitable when they go public. This is often due to operational and developmental costs that exceed a corporation's revenue stream -- but the difference is that this flow of cash is stronger than ever before.

Hom, who writes the blog, also found that revenue of $100m annually is part of a staple trend in order to go public. 60 percent of tech companies today reached this level, including corporations Groupon and LinkedIn.

$100m seems to denote the company’s worth to investors seeking the next money-making deal, and this benchmark figure is slowly becoming associated as an IPO requirement. In contrast, only 34 percent reached this target in 1999.

ipo what does it take