Last year’s investor dreams of a strong 2024 IPO pipeline have faded, if not disappeared entirely, as we head into the second half of the year.
This year delivered four venture-backed tech IPOs – Reddit, Astera Labs, Ibotta and Rubrik – in March and April, making it look like this year could boost investors’ momentum in 2023. There was hope. But secondary investors and IPO lawyers recently pointed out. TechCrunch notes that despite these four successes, macro conditions like the upcoming presidential election and high interest rates mean the IPO market won’t fully reopen until 2025.
This year is still on track to be better than 2023, and we’ll likely see a few more public filings throughout the year. The companies, including Klarna and Shen, have worked with bankers and appear to be nearing the line, but their IPO timelines are still in doubt.
For the most part, it can be easy to figure out who is who. is not Who is instead going public this year? Some CEOs of late-stage startups have said outright that they will not IPO in 2024, while other companies have taken financial steps that indicate a public listing is not imminent. Here are some venture-backed tech companies we don’t expect to hit the public market this year.
The skims
Kim Kardashian’s underwear and loungewear brand Skims is heading to the IPO market, but not this year. The 5-year-old company, valued at about $4 billion, was touted by many investors this year as an IPO despite its young age. However, information Reported That the company will go in the first half of 2025 at the earliest.
the bell
Chime, the 12-year-old challenger bank and fintech startup, has since been on many investors’ lists of IPO hopefuls. Withdrawn its IPO plan. Referring to market conditions in 2022. The company appears to be moving towards an IPO and, according to information, has approached bankers – but not for a 2024 listing. It’s worth noting that Chime’s mutual fund backers have marked the fintech’s valuation by 25 percent over the past six months, according to secondary data platform CapLite, a positive after nearly two years of steep declines. There is change.
Cover view
New Jersey-based AI company CoreWeave raised one of the largest late-stage venture funding rounds this year when it closed on a $1.1 billion Series C round in May. The startup announced another $7.5 billion in debt capital a few weeks later. While raising a round like this suggests to us that CoreWeave won’t be doing an IPO this year, The Info has also heard from sources that The company’s 2025 IPO plans are in the works.. The 7-year-old startup has also seen its valuation rise 42% since its Series C, indicating it doesn’t need to rush to the public market and has There is room to grow while still being private.
Sword health
All-powered virtual physical therapy startup Sword Health recently indicated it plans to IPO, but not until at least 2025, Sword founder and CEO Virgilio Bento told TechCrunch. The startup just issued a tender offer for $100 million of employee shares, in addition to raising $30 million in new equity, valuing it at $3 billion, further proof that There is no rush in public markets.
Plaid
At an Axios event in March, Plaid CEO Zac Perrett said that B2B fintech There are no plans for an IPO in 2024.. This echoes what TechCrunch’s own Mary Ann Azevedo reported last October after the company hired a new CFO. Plaid was valued at $13.4 billion in 2021, its latest valuation.
Figma
While design unicorn Figma hasn’t directly said it won’t IPO this year, its moves point in that direction. In May, the company announced a Tender Offer To allow existing investors and employees to sell their Figma shares, if they wish, in the secondary market. This type of liquidity event usually does not precede the major liquidity event of the IPO. The tender offer valued the startup at $12.5 billion, less than the $20 billion Adobe was willing to pay but more than the $10 billion last primary round valuation Figma received.
striped
Earlier this year, Stripe also made a tender offer to its current and former employees. In February, the fintech unicorn announced a secondary sale that valued the company at $65 billion. While that’s lower than the $95 billion valuation the company will achieve in 2021, the company is building its valuation back up. That’s a sign that Stripe will likely raise that value a bit more before hitting the public market.
Databricks
AI cloud platform Databricks isn’t even possible for 2024 — perhaps to the dismay of VC investors who predicted it to be the first company to go public last year. The company raised $500 million in fresh capital last fall in a Series I round that valued it at $43 billion. While companies don’t typically raise funds before a public listing — that’s part of the IPO process, after all — the investors they raised this round from were crossover investors like T. Rowe Price. These are not the types of investors who object to IPOs. When market conditions improve, Databricks is in good shape to be one of the first listings in 2025, if they choose.
Canva
The Canva isn’t likely to be unveiled until at least next year and the design launch could wait until 2026. said co-founder Cliff Obrecht, husband of Canova CEO Melanie Perkins Start dailyAn Australian and New Zealand tech publication, in March, said the IPO would be at least 12 months away, if not sometime in 2026. Do it in America
This post was originally published on May 24. It has since been updated on June 11 and August 7 to include additional companies.
Credit : techcrunch.com