So what happened? E2open is in the attractive cloud-based software sector, and other cloud-based companies such as Splunk have seen their IPOs perform well. Reasons for the disappointing performance may include:
- Lower revenue growth than other cloud-based companies that have recently gone public;
- Reliance on Research in Motion as a major client;
- Large exposure to Europe;
- Historical net losses;
- Possible aggressive IPO pricing; and
- Post-Facebook IPO investor nervousness.
Crosspoint Ventures held 19.8% of the outstanding shares pre-IPO and 16.9% post-IPO.
Link to E2open's final prospectus:
Articles on the IPO: