So maybe the drama over IPOs this quarter—or lack thereof—isn't quite over yet. Last week when Rackspace Hosting gleefully announced that it was going to be the first IPO this quarter—breaking what was the longest drought in IPOs sine the '70s— the news was met with relief among entrepreneurs and venture capitalists. We even suggested that someone crack out the good champagne.

Today things aren't looking quite so rosy. After Rackspace entered the market on Friday with stocks at $10 per share, things took an ominous turn. While shares temporarily hit $12.50—the low end of what they were expecting—they plummeted 20% before the market closed, prompting some analysts to suggest that Rackspace's entry into the market maybe doesn't signal a change in fortunes yet for start-ups who want to rake in bank by going public.

This story isn't over yet, though. As we mentioned last week, word is that A123 Systems, a nano-tech company, is planning on taking its turn at going public soon. Stay tuned.