News from Sina US stocks on the 14thDow JonesThe average price index of industrial stocks has risen nearly 20% this year, breaking one record after another, but some newly listed companies have been given the cold shoulder.

Uber 、LyftAndSlackUnicorns that went public this year are in trouble because investors are questioning when or whether they will be profitable.

In addition, WeWork's valuation has shrunk sharply before it even has time to go public.

Will IPO be better in 2020?

The market is clearly watching Airbnb, which is likely to be the most famous unicorn to go public next year.

"Airbnb will be next year'sUber. All the attention, hopes and dreams will fall on it. " Said James James Gellert, chairman and CEO of RapidRatings, a research firm.

But Gellert believes that Airbnb should outperform UBER TECHNOLOGIES INC because its fundamentals are stronger and there is less competition.

Investors are also betting on takeout service Postmates, trading app Robinhood and mattress seller Casper.

"2020 could be a good year for the IPO market," Santosh Santosh Rao, head of research at Manhattan Venture Capital, said in an interview. There are a large number of distribution channels. IPO has not been interrupted, but the threshold has changed. "

Rao added: "investors are now more demanding and they want a sustainable business model."

Rao is optimistic about the prospect of Airbnb and Postmates going public next year.

He also keeps a close eye on Postmates's competitor DoorDash, payment company Stripe, big data giant Palantir and Chinese ride-hailing software company DiDi Global Inc..

But the performance of these companies will largely depend on whether they give investors more say in the way they operate.

Strong corporate governance is crucial

For startups that let founders and CEOs set the agenda, WeWork's fiasco may be the last nail to crush them.

For this reason, Gellert says, corporate governance will be more important than profitability in 2020.

"Technology companies have exceeded their limits through dual listings and control by the founders of CEO/." "if you buy shares in a listed company, you should have the right to vote and know what's going to happen," Gellert said in an interview. Therefore, the IPO of many technology companies boasts the concept of transparency and avoids the rights of investors. The market is tired of it. "

Lonne Jaffe, managing director of venture capital firm Insight Partners, agrees.

"there is no doubt that we pay more attention to governance and integrity. It is the forefront and center of all the company's senior management team at a later stage, "Jaffe said."

Start-up investors are also concerned about cyber security and privacy, he added.

Focus on profit margin

Wall Street will still keep a close eye on profit margins and corporate governance.

"looking back at several IPO cases this year, some companies' growth expectations do not match," said Kevin Bianchi, an insurance partner at BDO, a tax and financial advisory services firm.

For the next wave of unicorns, profit margins will become more and more important. The pace of growth at all costs will slow, "he added.

Jaffe responded to this view.

"companies that perform well tend to be those with strong fundamentals." "the market is focused on rapid growth, but there are nuances," he said. They want quantitative indicators, not experiments. "

Jaffe is looking for companies with high profit margins and lower costs.

In the end, the health of the IPO market depends largely on the performance of other Wall Street firms.