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�� Predicts: 15 Companies That Could Go Public In 2026 As The IPO Market Gains Momentum

�� News — Tue, 06 Jan 2026 12:00:14 +0000

Editor’s note: This article is part of our 2026 forecast coverage. See our IPO market outlook here, our startup M&A forecast here, and our venture investment outlook here.

After a prolonged slowdown, the IPO market is showing clearer signs of life. As our 2026 IPO outlook forecast details, improving public-market conditions, stabilizing interest rates and renewed investor appetite for growth are setting the stage for a wider reopening of the listing window.

Against that backdrop, a growing cohort of late-stage private companies now looks increasingly prepared to make the leap. Using ��ܲԳ��’s — which evaluate factors including funding history, growth signals, investor mix and market timing — we’ve curated a list of 15 companies across AI, enterprise software, fintech, space, defense, healthcare and consumer tech that could realistically go public in 2026, should market momentum continue to build.

AI and enterprise tech

: When the window is open, you make your move. That’s something IPO market timers take to heart. But while well-funded private companies are aware of this cyclicality, actually prepping and orchestrating a public debut takes the kind of prep that doesn’t always align with the perfect window. That said, AI infrastructure unicorn Crusoe Energy Systems is certainly scaling in a direction that points to a public exit, a likelihood that �� predictions affirm with a “probable” rating on a listing for the Denver-based company. Crusoe closed on a in October at a valuation of more than $10 billion. With generative AI platforms currently expanding and investing at an unprecedented rate, the timing is certainly right for the kind of growth metrics IPO investors appreciate.

— Joanna Glasner

: Databricks has been on our list since the end of 2021, when it missed the IPO window. ��ܲԳ��’s predictive tools label it a “very likely” IPO candidate and that makes sense. The 12-year-old, San Francisco-based company is well placed to go public. As of Q3, it announced it is growing more than 55% year over year, with an over $4.8 billion revenue run rate as of its . Of that revenue, $1 billion was from its AI products. Net retention was above 140% and the company has been free cash flow positive for more than 12 months. Its valuation in recent months has soared. It was valued at $100 billion in September and in December at $134 billion in a round led by and public market investors and .

: Competition among model developers is heating up. AI lab has engaged to begin to explore an IPO, according to the . While 2026 might be too early for Anthropic to go public, another, less-known model developer could make a public-market debut this year. Cohere, co-headquartered in Toronto and San Francisco, focuses on supporting sovereign and secure AI for enterprise and governments. Its customers hail from across North America, APAC and EMEA, and include , and . , its founder and CEO, spoke at a event in London expressing an interest in a public listing in the near future for the 6-year-old company, which was recently valued at $7 billion with . �� predicts it is a “probable” IPO candidate.

: Design platform Canva is another strong contender to go public in 2026. The 13-year-old Sydney, Australia-based company was valued at $42 billion in its most recent funding — a share sale for employees led by public market investor . As of its August 2025 funding, Canva’s . The company, which �� bills a “probable” IPO candidate, claimed 240 million monthly users designing with its tools at that time. And adding further validation of Canva’s public-market readiness, competitor went public in July 2024 at a valuation of $16.1 billion. (Although, Figma’s stock is slightly up as of mid-December but remains well below its first-day massive .) As of Q3, Figma, by comparison, has reached .

— Gené Teare

: Before the AI boom, quantum computing was the hot, capital-intensive tech that got VCs and technologists excited. While AI has eclipsed investor interest in quantum, the latter continues to draw big checks from investors, who see enormous potential for the technology to facilitate breakthroughs in areas ranging from drug discovery to cybersecurity and defense. At least one quantum startup is actively mulling an IPO. That’s Quantinuum, which �� labels a “probable” IPO candidate. That prediction squares with other reporting, including a March 2025 that cited a source with direct knowledge of the matter saying parent company is aiming for a 2026 or 2027 listing. The Broomfield, Colorado-based startup, formed in 2021 via the merger of Honeywell Quantum Solutions and Cambridge Quantum, has raised $925 million from venture investors to date, including a $600 million -backed Series B in August at a $10 billion pre-money valuation.

— Marlize van Romburgh��

Space and defense tech

: Space tech has been a strong area for venture investment of late, and with the prospect of a IPO in 2026, it’s an increasingly buzzy sector for public markets as well. Among recently funded startups in the sector, Torrance, California-based K2 Space is a standout on several fronts. For one, it’s a fundraising machine, securing more than $400 million across three rounds since 2024. That culminated in a $250 Series C led by last month at a $3 billion valuation. The company, founded in 2022, develops large, high-power satellite platforms and has secured $500 million in signed contracts across commercial and U.S. government customers. �� predicts it’s “probable” that the startup will IPO.

— Joanna Glasner

: This one is kind of a gimme. Late last year, -led SpaceX was reported to be eyeing an IPO that would be the largest VC-backed listing of all time —��by about 10x — at a target valuation of $1.5 trillion. The company is already one of the most valuable private businesses in the world. Its reported IPO ambitions make a lot of sense, given the capital-intensive nature of space exploration, aforementioned investor appetite for space tech, and its revenue: an $15 billion in 2025, much of it from its fast-growing StarLink satellite internet business. Founded in 2002, SpaceX has raised nearly $12 billion in its lifetime, according to ��, which pegs a “very likely” IPO probability on the Hawthorne, California-based company. Investors include , , , and , among others.

: Venture investment into defense tech hit an all-time high last year, and no company received more money than Anduril. Of the more than $7.7 billion that flowed to defense-related startups in 2025, roughly a third went to Anduril in its $2.5 billion Series G at a $30.5 billion valuation. The startup, founded in 2017 by founder , is well-connected in the administration and has been the beneficiary of the U.S. military’s efforts to modernize its defense and war technologies, including a contract with the to supply VR/AR headsets to the . The company has raised $6.3 billion to date from investors including , the , and . The Costa Mesa, California-based company is deemed a “very likely” IPO candidate.

— Marlize van Romburgh��

Health and consumer tech

: Innovaccer, provider of AI-enabled data and intelligence platform for healthcare providers, hits a lot of the checklist items we see in pre-IPO startups. It’s been around for a while (founded in 2014), raised considerable capital, secured a big early this year, and has high-profile strategic backers including . With 1,200 employees across five global offices, San Francisco-based Innovaccer is also a fairly large operation at this point, and certainly looks scaled enough for a public market debut, all factors that contribute to its “probable” IPO prediction from ��.

— Joanna Glasner

: Hardware-maker Nothing is taking a more unconventional path to a potential IPO. The London-based startup is working to be “IPO-ready” in three years, CEO and co-founder last month. In the meantime the company is giving fans of its smartphones and other gadgets a chance to invest at a via platforms like and . “The timing will depend on market conditions and what makes sense for the business at that point in time,” Pei told the publication. �� puts a “probable” prediction on an IPO for Nothing, which has reportedly posted fast growth, particularly in markets like India, the U.K. and Japan. The company has said it hit more than $1 billion in lifetime sales last year and has sold more than 7 million devices. Along with its crowdfunding campaigns, Nothing has raised more than $446 million from venture investors including and , .

— Marlize van Romburgh��

Cybersecurity

: Cybersecurity has long been one of the most robust and predictable areas for venture investment. One of the faster-growing startups in the sphere is Huntress, which offers cybersecurity products for small and medium-sized businesses that don’t have the resources for a fully staffed 24/7 security team. �� pins a “probable” IPO prediction on the company, and CEO has also indicated a Huntress listing is a strong possibility in coming years. on the floor of the in late October, he said that the Columbia, Maryland-based company has posted 60% year-over-year growth and is on track to hit $185 million to $190 million in revenue this year. Demand for its offerings has only increased as generative AI has aided scammers and hackers to craft more sophisticated phishing and other cyber attacks, he said. The company has raised nearly $310 million from investors to date, , including a June 2024 Series D led by , and .

: �� says it’s “probable” that crypto wallet startup Ledger will IPO. That’s down from a “very likely” prediction last year, but other signs continue to point to the likelihood of an offering for the Paris-based startup, which provides a hardware wallet to secure crypto private keys. That means Ledger, founded in 2014, is well-positioned at the intersection of two currently hot industries: cybersecurity and blockchain. It has raised some $577 million from venture investors including and , per . CEO in mid-2025 that Ledger is actively thinking about a U.S. stock market debut, likely within the next three years. He reiterated that an IPO is actively under consideration in an interview with last year, adding that the company’s revenue had hit triple-digit millions in 2025 amid soaring demand for secure crypto storage devices spurred by rising hacks. Ledger secures about $100 billion worth of bitcoin for its customers, he said. Gauthier has previously said an estimated 20% of the world’s crypto assets are protected by his company’s wallets.

— Marlize van Romburgh��

Fintech

: With a “very likely” IPO prediction from ��, 2026 could be the year that Plaid, a fintech company that connects bank accounts to financial applications, finally decides to go public. In April, the company sold about $575 million worth of common stock at a $6.1 billion post-money valuation. At the time, Plaid told that it would not go public in 2025, but confirmed that an IPO was a milestone the company continued “to track towards.” The startup has not revealed specifics around revenue, noting only that 2025 was a record-setting year in which revenue grew over 25%. Plaid has raised about $1.3 billion from investors such as , , , and .

: Revolut, a digital bank based in London, is a “very likely” candidate for an initial public offering, per �� predictions. In November, it completed a secondary share sale, boosting its valuation to $75 billion. That was a 67% jump compared to the $45 billion that Revolut was valued at in August 2024 when it announced to provide liquidity to employees. Investors include , , , , ’s venture capital arm , and . Revolut has seen impressive growth since its 2015 inception. In 2025, it achieved $1 billion in annualized revenue and surpassed a 65 million customer base across 100 countries. The company likely won’t IPO until it secures its full U.K. banking license, for which it is still .

: Monzo, another U.K.-based banking platform, is also said to be eyeing an IPO in 2026 and �� pegs a “very likely” prediction for an offering too. Timing of the IPO is so sensitive for the company now that its CEO was pushed out of the head role due to his reported attempts at a listing earlier than some directors apparently wanted. He also reportedly indicated he might leave soon after. In June, Monzo revenue of more than $1.35 billion and “a sharp rise” in annual profit. It also increased its customer base by 25% to 12.2 million in its last fiscal year. The company was valued at $5.9 billion in October 2024 after selling shares to a group of existing investors. Backers include , , , and .

— Mary Ann Azevedo

An IPO prediction is never a promise. But as market conditions shift and investor appetite broadens, these companies are flashing more of the signals that tend to precede a public offering.

Methodology

��ܲԳ��’s utilize �� data — including funding and valuation, and milestones such as financial growth, key leadership hires, market share expansion and headcount growth — to forecast the likelihood of a private company launching an IPO, providing a probability score and its supporting evidence. Read more about ��ܲԳ��’s Predictions & Insights and its methodology for IPO predictions .

The IPO Market Is Opening Up. These 14 Companies Could Be Next.

�� News — Tue, 02 Sep 2025 11:00:34 +0000

After a prolonged winter, the IPO market in 2025 has finally thawed, with companies from to to launching big debuts in the first eight months of the year. So, who’s next?

To help answer that question, we used ��ܲԳ��’s to curate a list of 14 venture-backed companies in sectors ranging from AI to fintech to consumer goods that could be on tap as IPO candidates in the foreseeable future. Some of them are known IPO hopefuls; others, more under-the-radar picks that nonetheless have strong credentials for a public-market launch. Let’s take a closer look.

Fintech

There is perhaps no IPO more anticipated than that of payments giant Stripe. And, unsurprisingly, the fintech is “very likely” to go public, according to �� predictions.

However, Stripe seems to be doing so well as a private company that some people speculate it has no reason to take to the public markets. Stripe, which has dual headquarters in San Francisco and Ireland, is not only the most-valuable fintech in the world, it’s one of the most-valuable private companies, period. But instead of going public, it’s thus far been offering early investors and employees liquidity through secondary sales. In February, for example, Stripe announced in which investors would buy up shares from current and former employees at a valuation of $91.5 billion. Stripe passed the $1.4 trillion total payment volume threshold in 2024. Says : “There are no perfectly reliable sources for Stripe’s revenue, but some sources estimate they surpassed $16B in 2023.”

Since its 2010 inception, Stripe has from investors such as ,,, and . Whether it finally decides to take the plunge into the public markets remains to be seen, but if it does, there is no doubt its filing will be devoured by media and fintech enthusiasts alike.

Airwallex, a Singapore-based global payments and financial platform, is also “very likely” to go public, per �� predictions. CEO has stated that the plan is to have Airwallex make its public market debut by the end of 2026, although the company is reportedly “” to list. Interestingly, Airwallex rejected a $1.2 billion acquisition offer from Stripe in 2018. And that probably wasn’t a bad move. Founded in 2015 in Melbourne, Australia, the Stripe competitor has raised more than $1.2 billion in funding and was valued at over $6.2 billion as of its last raise — a in May 2025 that included $150 million in secondary share transfers. Investors include ,,, and 1, among others.

In August 2024, that Airwallex had reached an annual revenue run rate of $500 million after seeing major growth in its North American and European businesses. In announcing its Series F, the company that it was “on track to hit $1 billion in annualized revenue in 2025, as businesses of all sizes look to expand globally without friction.” That follows its achievement of $720 million in annualized revenue in March, up 90% year over year, according to the company. It touts more than 150,000 customers globally, including , , , , , , and .

— Mary Ann Azevedo

Enterprise tech and AI

We know that AI chip company Cerebras, founded in 2016 by , has been gearing up to go public. The Sunnyvale, California-based company filed with the to go public at the end of 2024. It then delayed its offering due to regulatory scrutiny over its ties to UAE-based , which has since been cleared by the Committee on Foreign Investment in the United States. The company is considered a “probable” IPO candidate by ��. In its filing, Cerebras noted its dependence on a single customer, Group 42, a subsidiary of its investor G42, responsible for more than 80% of revenue in 2023 and the first half of 2024. Cerebras has built a larger chip that is 10x faster for AI training and inference compared to leading GPU solutions, according to the . Its customers include , and the . Cerebras is reported to be raising which could delay its plans to go public. Still, the market conditions are good for an AI chip company. has topped $4 trillion in value and , which went public in March 2024 at $36 per share, has doubled its price from mid-July to mid-August to over $180.

Databricks, at the center of AI and data, is a strong candidate to go public in the next year. The San Francisco-based company is one of the 10 most-valuable private companies in the world, with a in revenue run rate as of Jan. 31, and on track to deliver positive free cash flow. In December, Databricks raised a $10 billion funding, the largest round in 2024, which valued it at $62 billion. The 12-year-old company has also been on a buying spree, notably purchasing AI infrastructure builder in 2023, data management service in 2024, and sql database solution developer in 2025, each at $1 billion or more. �� indicates it’s a “probable” IPO candidate.

— Gené Teare

Clay sits at the red-hot intersection of AI and marketing and is a “probable” IPO candidate, per �� predictions. Its growth metrics and scale seem to support that outlook, with the company — triple its 2024 figure. It has likewise tripled its valuation in just over a year from $500 million to $3.1 billion in a $100 million Series C raise last month. The New York-based startup, founded in 2017, is reportedly nearing profitability. It’s backed by IPO-savvy investors including , and , further bolstering its public-market credentials. The company claims to have invented the “,” which CEO and co-founder has described as “the first true AI-native profession.”

— Marlize van Romburgh

Cybersecurity

Crypto wallet startup Ledger is “very likely” to IPO, according to �� predictions. That makes sense, as the French startup, founded in 2014, is well-positioned at the intersection of two currently hot industries: cybersecurity and blockchain. Paris-based Ledger offers a hardware wallet to secure crypto private keys. It has raised some $577 million from venture investors including and , per . CEO in June that Ledger is actively thinking about a U.S. stock market debut, likely within the next three years. It also has plans to expand beyond crypto security into cybersecurity more broadly. While he didn’t disclose revenue figures, Gauthier said Ledger has sold 8 million of its devices to date and estimated that 20% of the world’s crypto assets are protected via the company’s wallets. “Our size is compatible with an IPO,” he said. “That’s a short-medium term vision.”

It’s “probable” that security startup 1Password will go public, according to ��ܲԳ��’s prediction model. That makes sense, given the Toronto-based startup’s disclosed financials. The company was founded in 2005 and bootstrapped for its first 14 years before receiving its first outside investment from in 2019. It’s gone on to raise $920.1 million total from venture investors, per . Its most recent raise was in 2022, when it landed a $6.2 billion valuation in a $620 million -led round. While 1Password hasn’t raised since then, it likely hasn’t needed to: Co-CEO in February that the company has been profitable since the get-go and now has more than 150,000 customers, with 75% of its business selling to enterprises. While the company hasn’t made any formal moves toward an IPO, Faugno told CRN that “we do believe that this platform and this company can be a very large, standalone business. And we do believe that public markets are a likely stop on that journey, and an accelerator of that journey.”

Tanium, founded in 2007, is a frequent guest on IPO predictions lists, our own included. That’s likely because the endpoint management startup has raised a whopping $1 billion from private-market investors including ,, , and . It has also disclosed big revenue numbers to boot, that ARR topped $700 million in 2024 and that it had free cash flow margins north of 10%, making it profitable on an EBITDA basis. The company’s most recent funding-round valuation is $9 billion, though that dates to 2021. But trading on secondary-market platforms including has reportedly —��around $4 billion — more recently. Kirkland, Washington-based Tanium hasn’t disclosed going-public plans, and CEO — brought on last year to take over from co-founder — told Forbes “we feel very comfortable as a private company.” Still, if it were to pursue an IPO, Tanium may see a receptive market following data security platform ’s successful IPO last year.

— Marlize van Romburgh

Consumer startups

Founded in 2013, hair-color brand Madison Reed has had quite some time to build up a following, and it continues to expand its reach. Launched as an online brand, it also currently sells in brick-and-mortar stores and operates a network of�� hair color bars. Co-founded and led by , a longtime consumer-focused partner at VC firm , the San Francisco-headquartered company has raised over $220 million in equity funding as well as $50 million in debt financing. �� grades it as a “probable” IPO candidate.

Skims, the shapewear brand co-founded by in 2019, has expanded its way into a host of product lines including sleepwear and activewear in addition to its core shapewear offerings. Funding has followed. The company has raised more than $700 million in seed and venture investment and attracted a host of well-known backers, including and . It also has a knack for staying in the news, boosted of late by a controversial sculpting . Could an IPO be next? �� predicts that move is “probable.”

— Joanna Glasner

It’s unusual, to say the least, for a D2C clothing retailer to land on an IPO watch list like this one in the year 2025, but Quince is the exception. The San Francisco-based startup is a “probable” IPO candidate, per ��, a prediction likely fueled by its reportedly fast revenue growth, back-to-back funding deals, and strong brand appeal among Gen Z and millennials. The company has raised more than $260 million from investors to date, not yet including an in-the-works $200 million -led Series D that would reportedly value the company at more than $4.5 billion — double its year-earlier valuation. Quince bucks the trend when it comes to fashion startups, which have seen venture investment fall off precipitously since the peak year of 2023.

— Marlize van Romburgh

Health/biotech

Mountain View, California-based Commure, a provider of AI-enabled software for health systems and clinicians, has raised more than $800 million in venture funding to date, including a led by , per �� data. The company also that its ARR, in the hundreds of millions, has doubled for three consecutive years. Those sound like the kind of metrics that IPO investors like, and �� says a listing is a probable outcome.

Inari is hoping to pioneer technology for seeds that will enable plants to make the most efficient use of land, water and fertilizer. Founded in 2016, the Cambridge, Massachusetts-based company has raised more than $720 million in equity funding to date, a $144 million January financing. In terms of IPO potential, it helps that the company is employing two hot technologies: AI-powered predictive design and . Inari is another probable IPO candidate according to ��.

— Joanna Glasner

Defense/space tech

Sierra Space is firmly on the IPO radar. The company, named a “very likely” IPO candidate by ��, (including with ) and has raised $1.7 billion in total venture investment at a $5.3 billion valuation from heavyweights including and . The company has several marquee projects advancing, which include its Dream Chaser spaceplane and Orbital Reef commercial station. It also enjoys the benefit of an increasingly bullish market for space and defense startups, which have raised robust venture investment this year. The sector has already seen a successful 2025 IPO in the form of ’s August public-market debut — could Sierra be next?

— Marlize van Romburgh

Related �� query:

Methodology

Illustration:

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Forecast: 13 Companies That Could Go Public In 2025 If The IPO Market Gains Steam

�� News — Mon, 06 Jan 2025 12:00:14 +0000

Although 2024 was another exceptionally lackluster year for new public offerings, the IPO market could gain momentum in 2025 after its three-year lull. Yes, many large private companies still have stockpiles of capital that have helped tide them over in recent years as they wait for the public markets to improve, but eventually every venture-backed startup needs to exit, whether it be through an acquisition or in a public-market debut.

With that in mind, here are 13 companies that the �� News team thinks could be top contenders to go public if our 2025 market forecast bears out.

Enterprise tech and AI

: Yes, this one is kind of cheating. Cerebras should likely already be public. It filed to go public openly in September. That made sense. However, in early October it was Cerebras was postponing its IPO after facing delays with a U.S. national security review on UAE-based ‘s minority investment in the AI chipmaker. Nevertheless, it seems almost certain to go public soon. It’s a good time to be an AI chip developer. has become one of the most — if not the most — valuable companies in the world and venture funding is currently gaining traction in the sector, with investors continuing to pour money in. Finally, — which provides data and memory connectivity solutions for some of the biggest chipmakers in the world — had a successful IPO even though its shares have tailed off its highs. It seems right that another chip startup will try to right those tailwinds. We thought it might be , but a likely will probably keep it off the public market for a while.

: AI cloud platform CoreWeave was super busy last year. In May, it raised a whopping $1.1 billion in a fresh funding round led by in a deal valuing the company at $19 billion, Then just weeks later, CoreWeave locked up a $7.5 billion debt facility from the likes of , and Coatue. It didn’t stop there, picking up another $650 million debt facility. The company wanted the cash as AI continued to grow and CoreWeave was able to ride that wave. The startup gives access to the highly sought after AI chips from Nvidia through its more than two dozen data centers. In November it was reported CoreWeave was in an initial public offering that is expected in 2025. It seems well positioned to make that happen.

: While many are waiting for cloud security startup to go public after its big $1 billion raise at a $12 billion valuation last year, we are going to look at another cyber firm with Israeli roots. Early last year, application security developer Snyk it grew its revenue by 50% to $220 million in 2023, while also cutting its losses by 33%, according to the company’s Directors’ Report filed with the U.K.’s . That may help put its long-rumored IPO back on track — especially after fellow cyber firm went public last year. In late 2022, Snyk raised a $196.5 million Series G led by at a $7.4 billion valuation. That was a 13% drop from September 2021, when the company — which has now raised about $1 billion — closed a $530 million Series F co-led by and at an $8.5 billion valuation.

: SymphonyAI made our list six months ago and we feel even more confident 2025 is the year. In November, the company hired five-time CFO , who helped lead , ��and to their initial public offering, so it’s safe to assume he is being tasked with the same goal here. SymphonyAI also has already been to banks about a public offering. The Palo Alto, California-based company, which has reached both a $500 million revenue run rate and profitability, offers predictive AI across a variety of industries to help forecast things such as product demand. SymphonyAI was founded by , PhD, in 2017. In 2002, prior to founding SymphonyAI, Wadhwani founded , a private equity firm investing in software and technology-enabled services companies. With investors craving all things AI — likely including predictive AI — the timing may be right for SymphonyAI. We’ve been following the company for a while here at �� News, and the second half of the year could see it finally IPO.

— Chris Metinko

Fintech and banking

: Several large fintech unicorns are among the contenders to go public in the foreseeable future. But Stripe — arguably the most highly anticipated IPO for the past several years — might not be among the 2025 offerings. Still, we’re including the payments giant here because Stripe has made all the right moves in recent years to signal that it’s eyeing the public markets — it just may not have to do so just yet. The 14-year-old company, co-headquartered in Dublin and San Francisco, was most recently valued at $65 billion in early 2024, and crossed the threshold of processing more than $1 trillion in payment volume in 2023. The company hired , a seasoned CFO, in 2023, and has released an annual letter . It raised $6.5 billion in March 2023 to provide liquidity to former and current employees with tax obligations, and offered a tender offer for employees to sell shares at a value of $65 billion in February 2024. The company stated it is robustly cash-flow positive in its 2023 letter. With its strong financial position and by addressing employee liquidity, Stripe has removed immediate time pressure to go public and, for now, the fintech company is staying mum about its IPO plans. But we’re watching closely for further IPO clues nonetheless.

: Meanwhile, buy now, pay later service, Klarna has filed confidentially to go public. The Stockholm-based company will be 20 years old this year. It was last valued at $6.7 billion in a July 2022 funding, though that shaved 86% off the $45.5 billion valuation it had notched just a year earlier. Klarna reported revenue of $1.2 billion in H1 2024 — up 27% from H1 2023 — and an adjusted operating profit of $62 million. The company says it has sharply reduced customer service costs through the use of AI. Klarna, which launched in the U.S. in 2015, signaled that its U.S.-based revenue grew by 38% in H1 2024 compared to the same period a year earlier. U.S.-based competitor went public in early 2021 and is valued at $21.6 billion as of Dec. 12, with its most recent quarterly revenue totaling $698 million.

: The third most-valuable fintech on The �� , Revolut is a strong contender to go public. The U.K.-based mobile banking services company increased revenue in 2023 to $2.2 billion and reported profits of $545 million. The company is the youngest among the fintechs we list here, approaching its 10th year in 2025. Its earliest lead investors were and . For comparison, the largest public neobank, Brazil-based , went public in December 2021 and saw its shares surge around 45% in 2024.

— Gené Teare

Health and biotech

: This is another IPO prediction where we’re not exactly going out on a limb (pun intended in this case). Physical therapy startup Hinge Health hired to lead an early-2025 IPO, in September. The San Francisco-based company offers virtual physical therapy services and was last valued at $6.2 billion in a $600 million in 2021 led by Tiger Global and Coatue. The startup has raised more than $826 million total from venture investors since its founding in 2014, . Along with bringing on investment bankers in preparation for an IPO, Hinge Health — like other startups hoping to take a swing at the public markets in the current investment climate — reportedly has also been working to shore up its finances and become cash-flow positive, moves that included 10% of its workforce earlier in 2024.

— Marlize van Romburgh

: Venture-backed biotech startups generally go public earlier than their tech counterparts. And so by industry standards, 7-year-old Element Biosciences, with $678 million in equity funding to date, looks ripe for an offering. The San Diego-based company, which focuses on genetic analysis tools for the research market, most recently pulled in a $277 million Series D last summer that included backing from prominent pre-IPO investors and . Its DNA sequencer lines compete with industry giant .

— Joanna Glasner

Retail, travel and consumer

: Navan is the new . The corporate travel and expense-tracking platform, formerly known as TripActions, is the company that is always, definitely about to go public. And yet, it remains private. As background, for years, we predicted Instacart would IPO, until finally in 2023 that happened. For Navan, we’re saying 2025 will be the year for the 9-year-old company, which reportedly filed confidentially for an IPO back in 2022. (Yes, we know we said it would go public last year as well. But, hey, cut us a break.) There are concrete signs Navan is gearing up for a market debut. For one, last summer it the former CFO of the as its finance chief. Navan also disclosed last summer that travel bookings were up nearly 2x from year-earlier levels.

— Joanna Glasner

: Online ticketing marketplace StubHub has reportedly been contemplating an IPO for some time, especially as concerts and other live events have returned after the pandemic. in April that the San Francisco-based company was making plans for a summer 2024 IPO, aiming for a valuation of at least $16.5 billion — a sharp increase from co-founder ‘s new company, , paid when it took StubHub off of ‘s hands in 2020, but roughly in line with its valuation during its most recent private funding. But by July, StubHub had postponed its IPO plans until after Labor Day due to stagnant market conditions. Still, it quietly hired a CFO — , who previously worked in that position at publicly traded — in August. As of the end of 2024, we’re not aware of any further reporting about timing for a possible StubHub IPO, but it seems like a reasonable bet that if market conditions are indeed favorable in 2025, the company will again mark its calendar for an offering.

: Discord will be a decade old this year. In that time, it has raised nearly $1 billion from private investors including , , ,, , and . The San Francisco-based company is a popular communication platform initially tailored for gamers that has since expanded to host other online communities. It most recently raised private funding in a led by in late 2021 that reportedly . In what could be seen as IPO prep, Discord has also been working to diversify its revenue streams, like Video Quests, which reward users for engaging with video ads. It’s a somewhat similar approach to ‘s moves ahead of its IPO last year. Reddit started diversifying its revenue streams for large AI language models, changes that helped the popular online discussion platform narrow its losses and move closer to profitability ahead of its successful IPO in March 2024.

— Marlize van Romburgh

Miscellaneous

: Design-software maker Canva was on this list in 2023, and everyone knows that if you keep making the same prediction again and again, eventually you’ll be right. But this time, the Sydney, Australia-based startup has dropped a big clue that an IPO really is in the cards for 2025: In November, , the CFO who helped to take public, as its first finance chief. The company has raised a whopping $2.5 billion from investors — including , ��1, , , , and ��—��and was recently in a secondary sale. Canva, which competes with ’s suite of image editing and graphic design software, says it generates —��numbers that no doubt would pique public market investors’ interest.

— Marlize van Romburgh

Clarification: An earlier version of this article incorrectly stated that Canva was funded by Iconiq Capital. Funding came from , the venture arm within Iconiq Capital.

5 Trends In Tech And Startups We’re Watching In 2025, From An M&A Rebound To A Defense Tech Boom

�� News — Thu, 19 Dec 2024 12:00:49 +0000

Will the M&A market pick up next year and, with it, the IPO pipeline?

And what about the tech job market, which again saw tens of thousands of workers in the U.S. alone lose their jobs in 2024?

Every year, we offer up some predictions for the startup world in the coming year. Sometimes we’re right — as in last year, when we correctly predicted that IPOs would not come roaring back in 2024. Sometimes we’re wrong — also last year, when we expected the AI frenzy to cool (lol).

So, along with a big grain of salt, here are the five top trends we’re watching in the new year.

An M&A rebound?

There is a lot of optimism that the change of administration in the federal government will jump-start a slow M&A environment that many believe to be over-regulated.

M&A dealmaking involving VC-backed startups has slowed through the past few years — per �� — and that has greatly affected VCs’ ability to give returns to their LPs and therefore raise new funds.

Many VCs hope a change in the and will jump-start M&A activity after years of an overzealous regulatory environment quashed deals such as‘s proposed $1.4 billion acquisition of.

While big deals that got tied up in reviews make the headlines, other smaller under-the-radar deals failed to materialize because they have become more expensive and deemed not worth the money and hassle.

However, while change is inevitable at the regulatory agencies, there still is concern about how friendly the economy and new administration will be to both tech and M&A.

Increased tariffs — which President-elect has promised — could cause inflation rates to spike again, driving up interest rates. Also, while Trump has talked about less regulation he has also been critical of the power Big Tech holds. His nomination of Gail Slater — a frequent critic of Big Tech — to lead the ’s antitrust efforts has likely caused some pause in Silicon Valley.

Nevertheless, many are hopeful the M&A market will pick up — and with it the IPO pipeline — and liquidity from past investments will flow freely.

— Chris Metinko

Is 2025 the year IPOs return?

After another slow year in 2024 for new tech listings, there is an expectation that the IPO markets will pick up in 2025. A year ago, the outlook was not bullish. What’s changed?

“I think there’s a lot of confidence in the market. Stock markets are trading at all-time highs,” said of legal advisory firm . And “there’s been a rotation back to focusing on growth, which obviously is great for tech.”

For now, two high-profile companies have filed: Sweden-based , a buy now, pay later provider that has confidentially filed with the , and , an AI chip company that filed in September.

“We should see companies start to test the public markets in 2025 across sectors — fintech, cyber, AI, and SaaS, among others,” said , a partner at , via email.

“We’ll start to see momentum in the beginning of the year, and really accelerate, as the year goes on,” predicted Ben-Tzur, who saw early momentum in 2024 that then tailed off.

��— Gené Teare

AI and blockchain could equal big bucks

AI funding continues its torrid pace. More than half of last month’s $28 billion in global venture funding went to companies in the AI sector, with AI companies in everything from robotics to marketing to healthcare raking in funding.

Generative AI companies that build models, such as and, raise massive rounds seemingly at will, while many applications and agentic AI also seem to have little issue raising still-big rounds.

Just last month, San Francisco-based, a creator of quick-start AI applications and agents for workflows in healthcare, retail and financial services, locked up a $200 million Series C that valued the enterprise-focused generative AI platform at $1.9 billion.

However, some are looking to the intersection of tech’s new big thing — AI — and Web3, its last big thing.

More specifically, what role could blockchain help in developing the AI economy, especially with so many startups creating AI agents? Some investors see significant potential between the two — especially as blockchain and Web3 worm their way back into people’s consciousness with the explosion in crypto prices.

It is possible for AI agents to work even faster on blockchain since security is already built in — not something that was added later, as it was on our current Web 2.0 platforms. The efficiency could make AI even after and more dynamic, while being more user friendly and cheaper for enterprises.

It’s very much early days for the blockchain and AI intersection, but certainly something to watch.

— Chris Metinko

A white-collar recession will persist

During the peak of the unicorn boom in 2021, heavily funded startups were on a hiring spree. That enabled skilled workers to enjoy both high-paying jobs and some degree of career mobility�� in areas from programming to marketing to project management.

Of course, it didn’t last. Things turned south beginning in 2022, with scores of one-time highflyers cutting staff and those still employed increasingly opting to stay put. It’s a bit tough to gauge where we are in the cycle presently, but anecdotally and per media , it appears tougher than usual to land a well-paid job at a mature tech company or funded startup.

For 2025, we predict that the job market will remain challenging in scores of once-hot areas for tech hiring. Mature startups and public companies, in particular, will be vigilant about ballooning costs, and avoid the kinds of moonshot efforts many once pursued.

One could argue that generative AI, where funding and hiring remain elevated, is an exception. However, the counter-argument is that these are the companies developing the technologies best-suited to replace human labor in other white-collar industries. So what’s good for them, might not be good for the rest of us careerwise.

— Joanna Glasner

Space and defense tech will boom

The days when Silicon Valley was squeamish about developing military tech are clearly over.

As of mid-November, defense tech startups — defined as those in the military, national security and law enforcement sectors — had already raised nearly $3 billion in 85 rounds, per �� . That represents a new record for venture investment in the sector, beating out the $2.6 billion raised by such startups in all of 2022.

A number of factors play into the tech industry’s new coziness with defense tech. Governments are scrambling to incorporate the most advanced AI technology into their weapons and defense systems as conflicts proliferate from Ukraine to the Middle East. U.S.-China tensions are likely to stay heated under the incoming Trump administration, especially when it comes to China’s ambitions with Taiwan.

There’s also a large amount of overlap between defense tech, aerospace and industrial tech — sectors that are likely to have strong support from the White House and allies like CEO .

The ‘s 2025 budget request stands at $850 billion, with large allocations for unmanned systems and AI. Spurred on by the Ukraine-Russia conflict, on defense tech research, including new AI-powered smart weapons, more advanced drones and better radar technology.

For 2025, we predict that venture investment in defense tech will continue to grow, buoyed by government spending and friendlier relations between Silicon Valley and D.C.

— Marlize van Romburgh

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Midyear Forecast: Top Trends To Watch In H2 2024 — From Chips To AI Funds

�� News — Wed, 24 Jul 2024 11:00:03 +0000

So far, 2024 has proceeded very much like 2023 in the startup world.

AI is still the dominating talk of venture capital, funding is slightly up but most seem unsure if that’s a trend or a passing moment, and the IPO window is still only a bit ajar.

What may happen in the second half?

Well here’s a look at five trends �� News’ editors and reporters have been watching this year. Take them with a grain of salt — late last year we said AI valuations may come down.

Don’t bet on that big pickup in M&A

It seemed like for most of last year everyone pointed to 2024 as the year M&A would make a big comeback after several quarters of being down.

That big comeback just isn’t happening — at least not for VC-backed startups.

In fact, M&A is down through the first half of this year, with only 904 deals involving startups consummated, per �� . There were more than 1,000 in H1 last year.

The reasons are varying — from interest rates to regulations to valuations still being too high — but the takeaway is that deals just aren’t getting done.

Sure, there are some, including two $3 billion deals in Q2: buying privately held biotech for as much as $3 billion, and buying for more than $3 billion.

But there just haven’t been a lot. While valuations have come down, apparently it has not been enough for buyers in the market. In addition, the November election hangs over everything — and buyers are likely to see what the regulatory atmosphere is expected to be like after the outcome before making a big acquisition (although it seems one can expect a slow antitrust regulatory process no matter what happens).

There are, however, some reasons to be optimistic about an M&A revival. The valuation reset that occurred after the market correction in 2022 and 2023 has had some time to settle. Now acquirers have a much better idea of what they’re willing to pay for a company, and acquirees have a clearer sense of what they’ll accept. Also, the historic backlog of unicorns that have not yet exited means there is a large supply of strong, still-private companies for acquirers to pick from.

Perhaps a big deal will jumpstart the market (like the now dead / may have if it hadn’t collapsed). But haven’t we been saying that for a while?

Chips are getting big money

Chipmakers have been in the news as trade sanctions and stock prices have made headlines.

However, chipmakers also have caused a stir due to some of the big cash they’ve raised — or are about to raise.

Semiconductor startup funding was up about 25% through the first half of this year as VC-backed companies raised about $5.5 billion, per �� . The number includes huge rounds by the likes of , and .

Just last week, both and raised good-sized rounds.

Of course, what is leading to this renewed investor interest in chipmakers is AI. Folks are looking for specialized generative AI chips that are more cost-effective and energy-efficient, but also faster.

Artificial intelligence is the driving reason chip giant is now a $3 trillion-plus company. And while shares of are off their highs, they are still well above their IPO price from March.

Investors do not expect things to slow down. While investing in semiconductor startups is highly specialized, those in the field say there is renewed interest and increased competition on deals.

More big rounds could be on the way, as it has been smartphone-maker is leading a round of at least $300 million for Toronto-based AI chip startup , and is looking to raise a .

Also, it has been that artificial intelligence chips startup has filed confidentially for an initial public offering. It’s a good time to be an AI chip developer.

Everybody’s mind is on chips right now — and that’s unlikely to change.

Will AI funding keep growing?

Funding to AI-related companies surged this past quarter, the highest since the launch of . Funding almost doubled year over year and quarter over quarter to $24 billion. Meanwhile, concerns with the massive capital expenditure required to invest in GPUs to fund this innovation, without clear revenue in sight.

Proportions were up as well. So far this year, 1 in 4 dollars invested went to AI-related companies. In 2023, AI-related startups raised just under 1 in 5 dollars.

Will the increase continue? Our findings show that global funding was choppy quarter over quarter, driven by the size and number of mega rounds of $100 million or more. AI is no different. Funding might come down, but the pervasive influence of AI will continue.

New scout funds?

and announced a new $100 million joint AI fund, named Anthology.

Could this be the latest version of a scout fund as venture firms compete to get access to deal flow through well-connected operators? The fund brings together the sourcing of investments by large language model developer Anthropic with the support of a seasoned venture capital firm, in this case Menlo Ventures.

In recent years, AI companies have launched their own funds. OpenAI has with $175 million in committed capital, with investments in , and . setup in 2021, and made investments in , and recently . And , also established in 2021, made investments in , and . We spoke with who set up the venture outfit with the aim “to strengthen the ecosystem of partners that are around us.”

Who is next? ? ? ?

Project finance will pick up

For startups with high infrastructure investment costs, debt financing has long been a popular option. And in recent months, we’ve seen some historically large debt rounds.

To illustrate, we used to aggregate a list of six venture-backed companies that raised debt financings of $1 billion or more this past year.

Large project financing rounds are particularly prevalent for the cleantech space. In January we saw Swedish companies raise two of the largest debt financings: Sustainability-focused battery manufacturer landed $5 billion, and steelmaker closed on $4.6 billion. In the tech sector, meanwhile, AI cloud infrastructure startup secured $7.5 billion in debt financing in May.

Looking forward, with interest rate cuts in coming months, debt financing could look increasingly attractive. Additionally, given the large supply of companies that raised huge sums of equity funding a few years ago, debt financing offers a less dilutive way to capitalize companies for further scaling.

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H2 Forecast: Who’s Next To IPO?

�� News — Tue, 23 Jul 2024 11:00:42 +0000

Last year right around this time there were rumblings of the slumbering IPO market finally reawakening.

It kinda did with a few big names like and testing the waters, but more hope was held out for the first half of this year. However, the IPO window so far in 2024, while slightly ajar, certainly has not seen the barrage of long-private, venture-backed companies go public many expected.

Instead the IPO pipeline has produced just a trickle of big-name companies such as online platform and chip startup making the leap to the public market.

There likely will be more in the second half, although perhaps not as many as once thought thanks to the shrinking time frame, the election, etc. Nevertheless, here are our best guesses about who may look to find an opening to get listed in the next six to 12 months.

: New York-based AlphaSense, an AI-enabled market intelligence platform, last month agreed to acquire rival for $930 million in cash and stock. It also secured fresh financing in a $650 million Series F round that values the combined company at $4 billion. The company also counts and among the backers in that round, while was a prior investor. It’ll take some time to integrate an acquisition of that magnitude and to get the books in order for an IPO filing, so a public offering isn’t imminent. However, these are the kinds of steps a company might take if a big IPO is part of its future plans. Also, with $1.4 billion in funding since inception, it’ll take a big exit to deliver significant returns to its investors.��

: Eden Prairie, Minnesota-based cybersecurity firm Arctic Wolf is not new to this list. However, the timing may be right for this company to look at the public market. Back in late 2022, Arctic Wolf raised $401 million in convertible notes led by existing investor . Convertible notes work like a short-term loan, but these notes are repaid to the investor at a later point in equity — i.e. after an IPO — typically at a discount. Well, those notes will be approaching 2 years old, so it may be time to turn them into equity. The managed security provider is now 12 years old, and in July 2021 raised $150 million in a Series F that valued it at $4.3 billion. That may be the problem right now, as it could be hard to to hit that target. However, data security and management company went public earlier this year and was able to slightly top its 2021 valuation with its offering. Also, while Rubrik — which is similar in age to Arctic Wolf — isn’t profitable, it had a good IPO showing and has remained steady in the market. Maybe this is the right time for another cyber startup to test the waters.

: Yes, this one is kind of cheating. It’s already been that artificial intelligence chip startup Cerebras Systems has filed confidentially for an initial public offering. It’s a good time to be an AI chip developer. has become one of the most — if not the most — valuable companies in the world and funding is currently gaining traction in the sector, with venture capitalists continuing to pour money in. Finally, — which provides data and memory connectivity solutions for some of the biggest chipmakers in the world — had a successful IPO even though its shares have tailed off its highs. It seems right that another chip startup will try to right those tailwinds. We thought it might be , but a likely will probably keep it off the public market for a while.

: According to , a source close to San Francisco-based Chime said the digital bank is looking . Chime has not released finances, but is estimated to have around 23 million customers, which would make it the largest neobank in the U.S. Chime was last valued in 2021 at $25 billion in a funding led by , in advance of its plans to list back in 2022.��

: To be honest, we are going to keep putting Databricks on this list until we are eventually proven right. However, in all reality, Databricks will pick the exact moment it wants to go public and not a second sooner. As a VC was telling us the other day, “Companies like Databricks can go (public) whenever they want.” With election uncertainty swirling and inflation unstable, now likely isn’t the time. On the other hand, the San Francisco-based company is now more than a decade old, and the data storage and management VC-backed giant is making a strong AI play. It acquired competitor for $1.3 billion last year, and in May it even a new Databricks AI Fund as part of . Investors like all things AI right now, and Databricks would be the biggest new fish possible to enter the public market AI pond.

: Revolut released stellar earnings for 2023, a strong indicator that the London-based fintech has plans to go public. Revolut posted strong revenue growth in 2023 — up 95% year over year. The company for 2023 and a profit of $545 million alongside 12 million new customers. Its current customer base is 45 million as of June, gaining 7 million in the first half of this year. Revolut was last valued at $33 billion in 2021.��

: Founded in 2011, Alameda, California-based Sila Nanotechnologies has raised $1.4 billion to date in equity and grant funding to develop a nano-composite silicon anode engineered to vastly improve energy density in lithium-ion batteries. The company garnered headlines a few weeks ago for securing a $375 million Series G led by and , as it completes the buildout of a manufacturing plant in Moses Lake, Washington, that will supply automaker customers including . With rising adoption of electric vehicles and continued investor interest around next-generation battery technology, it wouldn’t be surprising if Sila added IPO to its long list of ambitious goals.

: We could not leave Stripe off a list of IPO contenders. Stripe’s value was halved to $50 billion in 2023 in a $6.5 billion round raised to support employees with their stock tax obligations. Stripe reached processed in 2023, up 25% year over year, and claimed to be cash-flow positive. South San Francisco-based Stripe would be the most anticipated U.S. IPO from all the companies on The �� . Its current CFO, , joined the API technology company in September 2023. He has taken three companies public: , and .��

: We’ve been following SymphonyAI for a while here at �� News. That’s why a came as little shock that the company was already talking to banks about a public offering. The Palo Alto, California-based company, which reached both a $500 million revenue run rate and profitability, offers predictive AI across a variety of industries to help forecast things such as product demand. It also has started offering generative AI features — because why not? SymphonyAI was founded by , PhD, in 2017. In 2002, prior to founding SymphonyAI, Wadhwani founded , a private equity firm investing in software and technology-enabled services companies. With investors craving all things AI — likely including predictive AI — the timing may be right for SymphonyAI.

: Vast Data operates a data platform optimized to power AI and deep learning in modern data centers and clouds. Founded in 2016, the New York company has raised $381 million to date, including a $118 million -led Series E in December 2020, with Goldman Sachs among its other backers. With continued investor enthusiasm around top-performing AI companies, it looks like Vast could make a compelling pitch around its capabilities. This month, the company certification as a high-performance storage solution for ’s cloud partners — helping tie the company brand to the highest-flying stock of the AI era.

Illustration:

Forecast: 15 Companies We Think May Actually, Really, Finally, Maybe Go Public In 2024��

�� News — Wed, 03 Jan 2024 12:00:38 +0000

Will 2024 be the year IPOs finally come roaring back, after a more than two-year lull? That seems unlikely, but then again, all venture-backed startups have to exit sometime, so at least some companies will likely decide to head to the public markets this year.

With that in mind, we once again offer up some ideas for companies we think would be top contenders when the public markets eventually reopen for new tech listings.

(You can see our predictions from 2022 and 2023 here, if you want to see just how wrong we’ve been in years past.)

Enterprise tech and cybersecurity

: Late in 2022, the Eden Prairie, Minnesota-based cybersecurity company raised $401 million in convertible notes led by existing investor . Convertible notes work like a short-term loan, but these notes are repaid to the investor at a later point in equity — i.e. after an IPO — typically at a discount. However, there has to be an event to turn those notes to equity. That’s why we’re thinking after more than a year, maybe it’s time for the managed security provider to test the public market waters. Arctic Wolf is seasoned — it was founded in 2012 — and in July 2021 raised $150 million in a Series F, which took its valuation from $1.3 billion to $4.3 billion. At that time, then-CEO said an IPO was likely the next logical move. However, maybe that’s the problem — those valuations from 2021 are hard to reconcile now.

: If we keep putting Databricks on this list, eventually we’ll be right. In all honesty, we kinda doubt the San Francisco-based data and AI company will see an IPO in 2024. The simple reason is: it just doesn’t need to do it. The 10-year-old company has more than enough investors willing to support it in the private market, and who would go public when they don’t have to? But maybe this is a good time for an AI-related company to go public while investor appetite is there. The company hit a $43 billion valuation after raising a $685 million — per a — Series I led by funds and accounts advised by in September. The company about surpassing a milestone of $1 billion in annual revenue this summer and has in the past hinted coyly at a potential IPO. It also just made a huge acquisition this year, buying competitor for $1.3 billion. Databricks has significant investors to eventually appease — the company has raised more than $3.5 billion, — as well as deep technology, as it creates tools and products to help companies view both structured and unstructured data in a single location without moving between different systems. Maybe 2024 will be the year.

: This one may be a layup, but we’ll see. In September, cloud and data security startup Rubrik was interested in going public as early as the fourth quarter of 2023. That would make sense. The company is nearly a decade old and has raised significant cash from the likes of, and. Last January, the company also it had surpassed $500 million in software subscription annual recurring revenue and appointed , former chairman and CEO, to its board of directors. Expanding your board with those that have knowledge of how to run a public company and hitting milestones can sometimes point toward an IPO.

: The cloud-based software provider for residential and commercial HVAC, plumbing, electrical and other field-service businesses has been rumored to be sniffing around the public markets for a while now. In September of 2021, the company was talking to investment banks and law firms for a potential IPO. Months before that, it raised a $200 million round led by at a $9.3 billion valuation. The 11-year-old company has other big-name investors, including and, which has helped it raise about $1.1 billion, . Those investors likely eventually want some liquidity back for their investment. ServiceTitan also is not getting any younger, being founded in 2012 and in the last few years it has made a handful of acquisitions — which can often be a lead-up to an eventual IPO. Perhaps it is having a hard time living up to that 2021 valuation, but regardless, the clock is ticking.

—��Chris Metinko

Fintech and banking

: As we’re out and about in Silicon Valley, we hear a lot of buzz and interest in investor circles about 13-year-oId Stripe maybe finally going public in 2024. The payments startup’s current value is $50 billion (though down from the $95 billion it saw after its Series H funding in 2021) thanks to a $6.5 billion funding it raised last year to cover early employee stock option costs. A possible clue that a long-awaited IPO for Stripe could be nigh: The San Francisco-based company brought veteran CFO — who had previously taken and public — on board in September 2023.

: Buy now, pay later payment services Klarna from Stockholm is in the process of�� setting up a U.K. holding company, which signals a potential . However, the company says it has no immediate plans to go public. It slashed its valuation by more than 85% to $6.7 billion in mid-2022. However , a U.S. competitor, has seen its stock rise by more than 300% this year to a value over $12 billion, which one would think would at least make 18-year-old Klarna consider the public markets. And its investors, which includes , are surely looking for a payout sooner rather than later.

: Among the neobanks, Starling Bank in the U.K. seems to be poised to go public first, with lots of strong numbers underlying its business. The company, now on the cusp of being a decade old, posted for the year ending in March 2023, growing sixfold year over year. The company received a U.K. banking license in 2016. CEO stepped down in May to hand the reins to COO , who will be the interim CEO. Starling is also said to have 4 million accounts across four different account types. Other challenger banks in Europe include , , and .

— Gené Teare

The London-based company says it’s in no hurry to check out to the public markets, but if its biggest competitor, Stripe, does, maybe Checkout.com will also get in line? The e-commerce payments startup has now raised $1.8 billion from investors including , , and — most recently a $1 billion round in January 2022 at a valuation of $40 billion. But CEO told TechCrunch in December 2022 that the company to $11 billion. The move was to reprice shares for employees and not a downround, he said — in fact, Pousaz said then, Checkout.com was in no hurry to raise additional funding. But investors who have poured money into the now 12-year-old company surely want to get returns and liquidity some time, right? (It’s also worth noting that the company numerous C-suite execs depart last year and laid off dozens of employees —��which could either be seen as a sign of trouble, or that the company is making the sort of cost-cutting moves public market investors might want to see.)

: This is the third year in a row we’ve put the San Francisco-based startup on this list, but this time we really mean it! Now, 11-year-old Plaid, which connects user bank accounts to fintech apps, has certainly been dropping clues about its desire to go public since a planned $5 billion sale to was scrapped in 2021 following regulatory issues. Plaid CEO told that “an IPO is certainly an aspiration” and that the company would consider either a traditional IPO or a direct listing. The same month, the company hired former CFO as its first chief financial officer — the sort of move that always gets tongues wagging about IPO plans. The company has raised more than from investors, most recently at a $13.4 billion valuation in 2021.

— Marlize van Romburgh

Cleantech

: The battery recycling company seems to fit a lot of the criteria that public investors like. It has a prominent founder and CEO (former CTO ). It has attracted $1.8 billion in equity funding from high-profile late-stage investors including and . And it’s an area where, with the right technology and scaling methodology, it’s hard to envision a real cap on potential demand. With that in mind, we wouldn’t be shocked to see the 6-year-old Nevada-based company test the waters for a potential offering next year.

— Joanna Glasner

Retail and travel

: Navan, formerly known as TripActions, reportedly submitted a confidential filing for a public offering in September 2022. The corporate travel and expense management software provider has yet to file publicly for an IPO, but there’s reason to believe it’ll do so in 2024. For one, the 8-year-old, Palo Alto, California-based company has raised roughly $1 billion in equity funding and $1.2 billion in debt funding over the years, with lead venture backers like , , and , who’d certainly appreciate an exit. More recently, the company laid off 5% of staff last month in a move reportedly speeding its path to profitability.

: The peer-to-peer car rental marketplace sure would like to go public. It originally filed to go public in January 2022. But unlike others who relinquished IPO dreams when market conditions turned, San Francisco-based Turo is still revving to go. The 14-year-old company has consistently submitted amended filings to the , including the most in mid-November. For the first nine months of last year, the company had $666 million in revenue, up nearly 20% from the year-ago period.

— Joanna Glasner

: We have to include this one on the list, of course. In November, Shein reportedly filed confidentially for a 2024 IPO in the U.S. The Chinese fast-fashion retailer has raised some $4.1 billion from investors including , and . It was last valued at $60 billion in a May 2023 funding round (though that was down more than a third from a year earlier). Shein is technically based in Singapore since it moved its headquarters there from China in 2022 in what was seen as IPO prep. Since its founding in 2008, it has shaken up the apparel industry with its low-cost clothing and other goods shipped directly to American and Western consumers from factories in Asia. Its growth has been stratospheric: It generated an and accounted for nearly one-fifth of the fast-fashion market that year. If it does go public this year, it’ll be one of the largest listings in the U.S. by a Chinese company and could well help kickstart the IPO market overall for other hopefuls.

— Marlize van Romburgh

Health tech and agtech

: Denver-based Strive Health bills itself as a next-generation kidney care provider, with a focus on identifying conditions earlier, driving better outcomes and lowering costs. To that end, the 5-year-old company has raised $386 million to date, including a $166 million May led by . While Strive isn’t one of the “usual suspects” on IPO prediction lists, we thought it warranted inclusion due to its prodigious fundraising and fast growth, as well as because health care is an industry where it’s not uncommon to launch public offerings after a big Series C.

—��Joanna Glasner

: Here’s a prediction we’re dusting off from 2022. San Carlos, California-based Farmers Business Network makes a platform that allows farmers to get up-to-date data on everything from seed selection to operations in an effort to help them minimize risk and maximize profits. The startup, which will be a decade old next year, toward an IPO in 2022. CEO told that year: “We’re certainly of a scale where we can IPO, without a shadow of a doubt.” Maybe this will be the year.

— Marlize van Romburgh

Correction: An earlier version of this article incorrectly stated that Stripe has already filed IPO paperwork.

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Forecast: 5 Top Trends In Tech And Startups We’re Watching In 2024, From AI To IPOs

�� News — Fri, 29 Dec 2023 12:00:58 +0000

Between the rapid ascendance of AI and the often dramatic downfall of startups large and small, 2023 was an action-packed year for tech and venture.

In many ways, we expect 2024 to be the year when things settle down a bit. The buzz around AI will likely wane, but so, hopefully, will layoffs. The IPO markets may make a tepid comeback and we expect that after nearly two years of falling funding, venture investment will level off.

Here’s a look at five trends �� News’ editors and reporters are watching in the new year.

The AI buzz wears off

Perhaps the most interesting thing to watch in 2024 will be what happens to AI and more specifically, AI investment.

While $100 million-plus rounds were the norm this year, many investors are at least talking of a potential pullback in the market as valuations have continued to skyrocket and many question how many winners there will be in the generative AI market.

Sure, the s ands likely will continue to be able to get nearly any valuations they want, but FOMO seems to be wearing off for investors in the space and many think other changes in the industry could affect investor sentiment.

Even as 2023 wore on, many investors seemed less and less interested in marketing or sales platforms that just wrapped AI around their platform.

Some VCs expect the legal and regulatory dilemmas AI companies could face in both the U.S. and overseas to lead to a slowdown in the flood of AI funding startups saw during 2023.

Others point to the fact that when the mobile revolution occurred more than a decade ago, the biggest winners when it came to the foundational infrastructure layer ended up being well-established tech companies. Sure, there were startup winners — like — but many Big Tech companies benefited the most from the last wave.

Of course, those Big Tech firms are already playing a large role in AI, investing billions of dollars in a variety of AI startups. The likes of, 1, and have been wildly active and that could continue to propel AI funding into the new year.

It is important to remember AI is expensive. Startups need data, computing power, talent and a variety of other resources — all things Big Tech companies can provide.

If they stop and VCs pull back on cash, 2024 could get cold for many hot AI startups.

— Chris Metinko

Venture fund slowdown

While many expect to see an uptick in startups shuttering due to changes in the funding landscape (see), what about VC firms themselves?

The news seemed to rock the venture world a little when it broke in December, and its uncertain future is likely to be watched by many.

However, folks in the VC world expect similar types of headlines in 2024.

The salad days of 2020 and 2021 birthed a lot of new firms, many of which are seeing their investments down on paper after a good number of startups have had to slash valuations. These firms will not be able to raise new funds, forcing some to close up shop and possibly even sell their current stakes in companies early.

Even some large, well-established firms had to change fundraising plans to adjust to the evolving market this year, as both San Francisco-based and New York-based announced cuts to their new funds.

Expect more of that. Venture capital seems like a fun business when money is cheap, but when a recalibration happens, its risks become apparent.

— Chris Metinko

Tech layoffs have slowed but aren’t over

With at least 300,000 tech workers in the U.S. alone who’ve lost their jobs since we started tracking tech layoffs in early 2022, we wish we could say we’re expecting the job cuts to end in 2024. But with startups continuing to shut down in late 2023 and large companies even making cuts leading into the holidays, it doesn’t look like layoffs are ending just yet.

Yes, we fortunately haven’t seen the scale of layoffs we saw in November 2022 and January 2023 — when large tech companies including , , , and Salesforce cut jobs by the tens of thousands — but a quick look at The �� Tech Layoffs Tracker (and our feeds) makes it clear there’s still plenty of pain in the tech workforce. While some of the layoffs are strategic trims, others are massive cuts across the board.

Couple that with a still lackluster outlook for the 2024 IPO market and a difficult fundraising for startups, and we expect layoffs to continue to pile up at least for the foreseeable future.

— Marlize van Romburgh

The end of the ‘everything is down’ narrative

As we’ve discussed, 2023 was a year of negative comps. Startup investment across pretty much every sector, stage and geography was down considerably from 2022 and even further below the 2021 peak.

In 2024, however, it’ll be much easier to craft a positive narrative for year-over-year funding. In sectors like, say, consumer products e-commerce, where investment has shriveled in recent quarters, it won’t take much to proclaim a sharp upturn.

We’re also hopeful that overall startup investment will tick higher in 2024. With tech stocks up in recent weeks, buoyed by hopes of Fed rate cuts, we’re also likely to see a return, finally, of some IPOs.

— Joanna Glasner��

Don’t expect an IPO boom, though

We may see a return for some IPOs next year, but don’t expect the market for new listings to come roaring back.

That’s the updated outlook we’re hearing from those who watch the markets closely, especially given the tepid performances of 2023 listings and , the only two major venture-backed IPOs since late 2021.

In the current environment, public-market investors are pickier about which companies they want to see IPO, insiders have told us. Namely, they’re more interested in profitability than growth at all costs, and they’re often looking for larger, more established companies that can sustain a robust market capitalization.

That means companies that can delay an IPO may do so until 2025 or later.

Then again, there are close to 1,500 private companies with valuations of $1 billion or more currently on The �� — and they all have to go public or otherwise exit at some time.

— Gené Teare

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Mid-Year Report: Who Could Still Go Public In 2023?��

�� News — Wed, 05 Jul 2023 11:00:43 +0000

This article is Part Three of our Mid-Year Report on an eventful 2023 in tech, startups and venture capital. Part One took a look at data and trends over the last six months. Part Two shared survey results from our readers about the rest of the year. Coming up, we’ll dive deep into trends and data in AI venture funding and their impact.

What does the IPO market look like in the second half of 2023?

While IPOs came to a screeching halt last year, we’ve seen a few promising public offerings in the first half of 2023. spinoff , for instance, was valued at $50 billion after it went public on the earlier this year.

Tons of startups are eager to make their public debuts. Mature startups including and have reportedly mulled over their IPO strategies. Other startups are starting to run out of cash as venture investors pull back —��a phenomenon exacerbated by the collapse of preeminent startup bank earlier this year.

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But IPOs are still few and far between, and those that choose to brave the public markets will have to accept that the sky-high public debuts of 2021 likely won’t happen this year. An unprecedented 414 U.S. startups went public in 2021, per �� data, but that number decreased to 93 in 2022. As of now, only 29 startups have made their public debut this year.

With all that in mind, we make a few bold predictions about the companies that could make their way to the public markets this year, or when the IPO window reopens.

— Keerthi Vedantam

Enterprise software

: The San Francisco-based data and AI company always makes everyone’s IPO list — and there’s a good reason for that. It is one of the most valuable private companies, with a $38 billion valuation after raising a $1.6 billion Series H led by in 2021. The company recently about surpassing a milestone of $1 billion in annual revenue and has hinted coyly at a potential IPO in the past. It also just made a huge acquisition, buying competitor for $1.3 billion. The deal for MosaicML could be another step toward the public market, as Databricks looks to expand its portfolio of offerings and cash in on an exploding AI market. Databricks has significant investors to eventually appease — the company has raised more than $3.5 billion, — so an exit makes sense. Databricks also has deep technology — it creates tools and products to help companies view both structured and unstructured data in a single location without moving between different systems — and a growing market. It even already has its own venture arm, . It seems like its evolution to a public company is nearly complete.
: This one may be a bit of a curveball, but just follow along. The Bellevue, Washington-based contract management software developer locked up $150 million in financing in late 2022. The funding was an even split of a revolving credit facility and convertible financing from (yes, that bank). At the time, Icertis CFO said the deal would help “build towards the next exciting chapter in our company’s journey.” Could that be an IPO? Eventually convertible notes need to be converted. An IPO allows that to happen. Also, Icertis’ contract platform helps companies structure their commercial, legal and operational data within contracts, and connect that data to its other internal systems such as human resources and CRM platforms. While not the sexiest of markets, allowing data to flow through different internal systems is a big market. The company also is already big. In March 2021, Icertis announced an $80 million Series F at a valuation of more than $2.8 billion and in early 2022 it was the company was worth $5 billion.
: All the way back in the salad days of 2021, the cloud-based contact center company locked up a $230 million Series D and became a decacorn. The San Francisco-based company also named industry veteran as its first chief financial officer. Carey joined Talkdesk from , where she helped lead the company’s initial public offering. While Sumo Logic recently became a private company again, perhaps it’s time Talkdesk goes public. Since it’s private, the company does not release financials, but it’s pretty big from some . The company even has its own investment arm, . It’s also 12 years old, so maybe the time has come?

— Chris Metinko

Consumer startups

I’m not expecting much of an IPO rebound this year for venture-backed companies that are long on futuristic vision and short on real earnings. Investors continue to shy away from companies that launched SPACs and IPOs a couple years ago, most of which are still way down.

However, there could be room for some growth companies with strong revenue and margins to contemplate, and compelling stories to go public. For the consumer and consumer-facing platform space, some names that come to mind include:

(formerly TripActions): OK, I cheated here. Navan already submitted a confidential filing for a planned public offering, which is widely expected later this year. The Palo Alto, California-based company, which offers software for corporate travel and expense management, has raised over a billion dollars in equity financing to date. In December, the company secured $400 million in credit facilities from and , less than two months after raising a $304 million Series G at a $9.2 billion valuation. Investors wouldn’t be putting all that capital to work if they didn’t see an exit on the horizon.
: The Chinese fast-fashion giant is another much-talked-about IPO candidate. Shein’s path to a U.S. public listing, however, continues to face hurdles, including from lawmakers and a that’s well below peak. Still, even with a cut, Shein was still reportedly around $64 billion — enough to generate one of the biggest offerings in a long time.
and : By most measures, alternative protein upstarts Upside Foods and Eat Just would not be companies deemed likely to dip a toe in IPO waters. Public companies in the space haven’t done so well, most notably , which is trading close to all-time lows. But last week we got some game-changing news: Upside, a maker of lab-grown meat, and Eat Just, which makes plant-based egg and owns cultivated meat company , from the to start producing their cell-based proteins. It’s the first such approval from U.S. regulators and could spark investor interest in seeing a public listing for these two early innovators. Plus, to deliver on their vision, they’ll need money to scale, something public investors could potentially provide in abundance.

— Joanna Glasner

Fintech

: Stripe has been waiting in the wings for an IPO for a while and, as one of the most valuable private companies in the world, is also one of the most obvious predictions on this list. The company filed to go public in 2021, but missed the IPO window when it slammed shut in 2022. The 13-year-old payments provider then pivoted to raise a massive $6.5 billion in a single funding round in March 2023 to cover an upcoming employee tax bill on registered stock units due starting in 2024. It also took a deep step down in valuation to $50 billion —��a 47% discount from its most recent funding round two years ago, a deal that valued the company at the time at $95 billion. Prior to its latest funding, Stripe had raised $2.2 billion. The company announced more recently that it has processed in 2022 —��up 26% from the previous year. The company $14.3 billion in revenue in 2022. Stripe also laid off 14% of its staff in November 2022, saying “we were much too optimistic about the internet economy’s near-term growth in 2022 and 2023.” Stripe is a well-branded industry leader whose stated mission is to increase the GDP of the internet. If the company steps out, it would be a strong signal that the IPO markets are not frozen.
: Swedish buy now, pay later provider Klarna has been around for 18 years, so it’s not exactly been in a rush to go public. But the company aims to be profitable in 2023, which would make it a good IPO candidate. And like every other venture-backed startup, it has investors waiting to get their returns. Klarna raised $800 million at a much reduced valuation of . Just a year earlier, it had been valued at $44.5 billion in a funding led by . Klarna’s revenue in 2022 was . Some rivals have already beat it to the public markets — , a U.S. competitor founded years later in 2012, went public in January 2021 and is currently valued at $4.4 billion. Klarna took steps to cut its losses in half in the first quarter of 2023 compared to a year ago while still growing revenue. And it has said , another strong hint that an IPO is likely a consideration.

— Gené Teare

Health tech and biotech

: Included Health was ramping up for an IPO back in 2022, when we could be optimistic about those things. The company, which has raised $344 million,, previously to help with the process. But, it met the same fate as other companies who thought their 2021 luck would head into the new year, and halted its plans. Included works with companies paying for their own health care services and was part of the growing employee benefits category. While it may have held off on going public, it is more than ready to enter the market.
: I’m still confident a teletherapy or telehealth company will go public sometime this year, if only because adoption of virtual care is still on the rise and some of these companies have already raised their Series F. Lyra was one of the first of its kind — established in 2016, it operates on a direct-to-employer model and has worked with companies like , and to provide teletherapy services. The company has raised $910 million, , including a $235 million Series G round back in 2022, upping its valuation to $5.58 billion.
: Why isn’t ElevateBio just a full-fledged big pharma company? The company raised $401 million in Series D funding back in May, and is currently creating the Microsoft 365 of drug development. By that I mean ElevateBio’s enclosed ecosystem of drug discovery, development and manufacturing technologies is all-encompassing. That same ecosystem makes it a favorite among biotech investors and companies vying to partner with Elevate. Biotech IPOs are expected to make a far faster recovery than other tech industries, thanks to strong clinical data exhibited by startups.

— Keerthi Vedantam

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Silicon Valley Bank Fails, Is Taken Over By Banking Regulators

�� News — Fri, 10 Mar 2023 15:07:55 +0000

, the de facto financial institution for much of the venture-backed startup world, was shut down by banking regulators on Friday morning following a dramatic decline in the company’s stock price and reports of a run on its deposits.

The Federal Deposit Insurance Corp. that said it had been appointed receiver for the bank. Insured deposits of up to $250,000 were protected, regulators said. Further detail on what would happen to deposits over the insured amount weren’t available. The FDIC urged those depositers to call a hotline at 1-866-799-0959.

The fallout of the bank failure in Silicon Valley is sure to be dramatic. SVB is vastly interconnected with the rest of the venture-backed ecosystem and alone banks about half of all venture-backed startups in the U.S., as well as many of those companies’ investors.

The Santa Clara, California-based bank has 17 branches in the Golden State and Massachusetts. Those branches will reopen on Monday for business, the FDIC said. As of Dec. 31, SVB had about $209 billion in total assets and about $175.4 billion in total deposits, according to the regulator.

“At the time of closing, the amount of deposits in excess of the insurance limits was undetermined,” the FDIC said. “The amount of uninsured deposits will be determined once the FDIC obtains additional information from the bank and customers.”

— This is a developing story. Check back for more.

Rapid decline

The dramatic sequence of events kicked off Thursday when SVB announced it had taken a $1.8 billion loss in Q1 by selling $21 billion in bonds — essentially its entire portfolio of securities available to sell — in order to shore up its balance sheet. It would seek to raise $2.25 billion by selling stock, it said. Shares of SVB fell another 68% in pre-market trading Friday morning before they were halted.

and other publications had earlier that SVB had been in talks to sell itself after the attempt to raise capital failed, and that larger financial institutions had been looking at the Santa Clara-based bank. Those deals apparently did not come to fruition fast enough to stave off a bank failure.

SVB is the first failure of an FDIC-insured institution this year. Its share price decline on Thursday had already prompted a broader bank stock sell-off and sent jitters through the stock market.

The bank has said its balance sheet came under pressure after its startup clients began to draw down deposits. “We are taking these actions because we expect continued higher interest rates, pressured public and private markets, and elevated cash burn levels from our clients as they invest in their businesses,” the bank wrote in a to shareholders.

In an earlier to investors, SVB said client cash burn “remains about 2x higher than pre-2021 levels and has not adjusted to the slower fundraising environment,” seemingly illustrating that startups have not reversed their previous patterns of spending.

SVB connections run through Silicon Valley

SVB’s Rolodex of venture firms it does business with is a who’s who of money in the valley — with names such as , and among the most prominent.

According to data pulled from ��, the bank participated in 75 founding rounds last year — mainly involving venture debt — that totaled $5.7 billion. That included leading a $200 million venture debt round for San Jose-based . That deal number is likely low, as many private companies do not publicly divulge debt financings — but nevertheless shows how intertwined the bank has become to the tech startup ecosystem.

In 2021, SVB took part in 73 rounds that totaled $3.1 billion, per ��. Thus far this year, the bank has participated in eight announced rounds, including leading a $30 million debt round for San Francisco-based .

�������� News, Author at �������� News

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Forecast: 5 Top Trends In Tech And Startups We’re Watching In 2024, From AI To IPOs

The AI buzz wears off

Venture fund slowdown

Tech layoffs have slowed but aren’t over

The end of the ‘everything is down’ narrative

Don’t expect an IPO boom, though

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Mid-Year Report: Who Could Still Go Public In 2023?��

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