The Next Big Tech IPOS Will Be in These Businesses
The next wave of tech initial public offerings will continue to be in software, but also in the consumer Internet space and ad technology companies, said Anthony Noto, the co-head of technology, media and telecom investment banking at Goldman Sachs, at the TechCrunch conference in New York City on Wednesday.
"The IPO market is very balanced now, but when we look down the pipeline there is some back-log," Noto said. "I think 2014 will be a big year for consumer Internet IPOs."
Tech IPOs are down about 50 percent year-to-date and there have been no consumer Internet IPOs yet so far this year, while at this point last year four of the 16 IPOs were consumer, Noto said.
The market for IPOs is positive, though, he said. There is demand for equities, plenty of capital, and investors have a strong desire to buy these growth stories, Noto added.
The lead sector in the IPO market during the second half of last year and the first half of this year has been enterprise software. While software IPOs will continue to be strong, going forward the tech IPOs will be more diverse, he said.
"When we look down the pipeline, there definitely is a nice backlog of a significant increase in the number of IPOs," Noto said. "And it's not just from software, a number of these are consumer Internet IPOs that I think will be very attractive, I think there will be some ad tech companies … so that's a sector that is becoming very viable and ready to go public."
—By CNBC's Cadie Thompson