While this does reflect a challenging macro-market backdrop, the upside of this is that when you see a crash in IPO activity it often means a bottom is near (albeit note the almost 2-year long IPO winter in 08/09!).

It does reflect market sentiment, but at the margin it also reflects supply: at the end of the day it’s all supply & demand. If the supply of new IPOs goes down then at the margin that helps the overall stockmarket supply vs demand balance.

All of this is not a new phenomenon — the chart below provides some longer-term perspective. The cycle of market booms and busts can be clearly traced by the ebb and flow of IPO activity.