As startups began to return to the stock market after years of pandemic-era volatility, 2023 was projected to be the return of the tech IPO.
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However, while companies such as Instacart and Klaviyo filed to go public this year, their lukewarm debuts dashed investors’ hopes that 2023 would see an IPO boom.
Some venture capitalists, according to Business Insider, are skeptical that 2024 will bring a stable enough market to kickstart the launch of new tech IPOs. Others in the financial sector believe that the Fed’s promised rate cuts, combined with a weak mergers and acquisitions market, will create ideal conditions for companies that have delayed their IPOs to go public next year.
Buyer told the outlet that “renewed, albeit significantly slower growth, coupled with last year’s expense rationalization/control leaves many with a genuine path to believable profitability,” and that “renewed, albeit significantly slower growth, coupled with last year’s expense rationalization/control leaves many with a genuine path to believable profitability.”
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Discord
The social messaging platform has been the subject of IPO rumors since the end of 2021, when the company reportedly turned down a $10 billion buyout offer from Microsoft. Discord was valued at $15 billion in a 2021 funding round — though given market fluctuations, it is unclear if the company would hit that valuation in a potential 2024 IPO.
Early last year, Reddit began making plans to go public. According to Business Insider, the social media company hoped to launch its IPO at a $15 billion valuation. Nonetheless, market volatility forced the company to postpone the public launch. Bloomberg reports that the company is now aiming for a first-quarter IPO in 2024 and is courting potential investors such as Goldman Sachs and Morgan Stanley.
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Chime
Chime, a digital, fee-free banking company valued at $25 billion in a 2021 funding round, hired Goldman Sachs to advise on an IPO in 2022, according to Reuters. The digital bank denied any immediate plans for a public debut, but it could simply be waiting out the market’s freeze.
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Stripe
The Wall Street Journal reported in January of this year that fintech startup Stripe had publicly announced a one-year timetable for deciding whether to go public — and we’re approaching the deadline. The company, which is valued at $95 billion in 2021, raised $6.5 billion in March of this year with a lower, but still significant, valuation of $50 billion.
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Klarna
According to CNBC, CEO Sebastian Siemiatkowski stated last month that Klarna is “pretty much ready” for an IPO following the company’s first profitable quarter since 2019. Despite the fact that the buy-now, pay-later company’s valuation has dropped from $45.6 billion to $6.7 billion in 2022, Siemiatkowski told Business Insider that he is waiting for a “sane market” before launching an IPO.
