IPO window cracks open and private equity moves in

The IPO window has opened—at least a crack—and private-equity sponsors are starting to line up.

Jay Ritter, Cordell Eminent Scholar, said public stock investors are willing to put their money behind companies that lay out growth plans. An extreme example of that, he said, are biopharmaceutical startups. However, investors are less excited about companies that are growing rapidly just because they are selling their products or services below cost, according to Ritter.

Read more insights from Ritter in this story from The Wall Street Journal.