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Hortonworks IPO Hits Valuation

Hortonworks IPO last week, hit its $1.1 billion valuation by Friday evening

15Dec

Unlike many Hi-Tech IPOs of the last 12 months, Hortonworks managed to provide some festive positivity.

Starting its initial offering at $16 on Thursday, it ended its week’s trading at $26.48, meaning that it met its $1.1 billion valuation from the last round of venture capital.

This was surprising given the current tech trends within the stock markets where uptake has often been slow and given the concern over the revenue and profits from the company.

What it did show was that there is a real belief amongst investors that Hadoop is going to be a major force in business in the next few years. With investors talking with their share buying habits, it shows not only that they believe that these companies will only get bigger but also that their relatively normal financial performances are only a short term thing.

It may also prompt others who work within the same area to consider an IPO in 2015.

Amongst the companies who may look at IPOs are Cloudera and MapR, both of whom work through systems who have a foundation in Hadoop.

MapR’s current valuation is similar to Hortonworks at $1 billion whilst Cloudera’s current value is around $4 billion, which may make an offering more difficult.

One of the main benefits that we are likely to see from this, is that aside from the money that investors are putting behind the work these kinds of companies are doing, their presence in society will also increase. This in turn may see more players move in to this space and increase the opportunities and flexibility of many companies looking at new data systems in the future. 

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