- 2023 was expected to be the year that tech IPOs make a comeback.
- However, few startups went public, and several companies postponed their initial public offerings.
- Here are five IPOs that could ultimately materialize in 2024.
Tech IPOs were expected to make a comeback in 2023 as startups began returning to the stock market after years of pandemic-era volatility.
But while companies like Instacart and Klaviyo filed to go public this year, their lukewarm debuts dashed investors’ dreams of an IPO boom in 2023.
Business Insider previously reported that some venture capitalists remain skeptical that 2024 will provide a stable enough market to launch new tech IPOs. But others in the financial industry believe the Fed’s promised rate cuts and a weak M&A market will create a perfect environment for companies that have put off IPOs to go public next year.
“The outlook for the IPO market in 2024 is bright and bright,” Lise Bayer, founder of IPO consultancy Class V Group, told Barron’s.
Bayer told the magazine that some cash-strapped venture-backed companies may see an IPO as an “increasingly attractive option” and that “combined with the expense rationalization/control over the last year, we have seen significant growth.” “Although the economy has slowed down, many companies still have a real path forward.” Achieve reliable profitability. ”
Here are five long-awaited IPOs that may finally be ready to debut next year.
The social messaging platform has been the subject of IPO rumors since late 2021, when the company reportedly turned down a $10 billion acquisition offer. Microsoft. Discord, which is widely expected to launch an IPO this year, was valued at $15 billion in a 2021 funding round, but given market volatility, it appears that the company is likely to reach that valuation with a possible 2024 IPO. It remains unclear whether this will be achieved.
Reddit began preparing for an initial public offering early last year. Business Insider previously reported that the social media company hopes to IPO at a valuation of $15 billion. Still, the company postponed its public release due to market fluctuations.according to bloombergThe company is currently targeting an IPO in the first quarter of 2024 and is courting potential investors including Goldman Sachs and Morgan Stanley.
Digital commission-free banking company Chime, which was valued at $25 billion in a 2021 funding round, hired Goldman Sachs to advise on its IPO in 2022, according to Reuters. The digital bank denied it had any plans to open to the public anytime soon, but it may have simply been waiting for the frozen market to end.
In January, the Wall Street Journal reported that fintech startup Stripe Inc. published a one-year timeline for deciding whether to go public, and that the deadline was fast approaching. The company was valued at $95 billion in 2021, but in March of this year it raised $6.5 billion, giving it a non-material valuation of $50 billion.
CNBC reports that Klarna is “almost ready” for an IPO, CEO Sebastian Siemiatkowski said last month after the company posted its first profitable quarter since 2019. The buy now, pay later company’s valuation has plummeted from $45.6 billion to $6.7 billion in 2022, but Business Insider reports that Siemiatkowski had a “healthy He said he was waiting for a market.
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