ANALYSIS: Unicorn IPOs Drew Increased Scrutiny in 2019

The IPO market started 2019 slowly, peaked in May, vacationed in August, then heated up again in October and November before slumping its way into 2020. The year was a mix of successes and missteps, of market resilience—and, ultimately, of increased investor reticence.

Many market experts had great hopes that initial public offerings (IPOs) in 2019 would exceed the robust 2018 results to break records. A government shutdown depressed January numbers, but soon start-ups announced new offerings.

Then came the stumbles. With nearly each successive unicorn IPO in 2019 (e.g., Lyft, Uber, SmileDirectClub, Peloton), investors became ...