The IPO market has started to see increased activity in 2024, with 33 IPOs so far. Renaissance Capital Assistant Portfolio Manager Avery Marquez joins Yahoo Finance Live to discuss why she believes a spring pickup is starting to materialize.

Marquez states that the IPO market is "off to a very good start" this year, noting that returns can make or break whether issuers believe a company is ready to go public. She highlights that there have been improved returns. If large deals continue to outperform, these returns "will be a huge driver" in seeing "more issuers come to market."

Furthermore, Marquez identifies several key sectors where the IPO market could see increased activity, including healthcare, technology, and industrials.

For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.

Editor's note: This article was written by Angel Smith

Video Transcript

SEANA SMITH: So we have some mixed, I guess, looks here at the IPO market. You could be more of an optimist and say, hey, the fact that we have seen 33 companies go public, that could be a strong indication just in terms of what we could expect once the Fed cut rates. But what do you think this signals about the activity that we'll likely see for the rest of the year?

AVERY MARQUEZ: Yeah, absolutely. I think I'm more of an optimist. I think that the IPO market is off to a very good start so far in 2024. You pointed out that 33 number. But looking at just companies that have raised $100 million or more, that sizable group, we've seen a pretty sizable increase over the last two years, so far this year. And we're only, you know, a couple weeks into the second quarter.

I think that we've seen a lot of activity in the pipeline, both the private and the public backlog. And we are starting to see this spring pickup materialize. We have two large deals on the calendar for this week and already two more on for next week, including Ibotta, which is another large tech deal. So I think that the IPO market is in a good place, as we head into the rest of the year.

MADISON MILLS: Avery for the companies that are sitting on the sidelines here, what do you think could be the single biggest catalyst to make the final leap and go public this year?

AVERY MARQUEZ: Returns are definitely going to be at the forefront of these issuers' minds. We have seen returns improve so far this year. We saw them improve last year. And going forward, I think if we continue to see that these recent large deals outperform, that will be a huge driver for continued activity, especially from these tech deals that we've seen, [? Reddit ?] and Astera, and now Ibotta next week.