Last year’s investor dreams of a strong IPO pipeline by 2024 have faded, if not disappeared entirely, as we approach the halfway point of the year.
2024 produced four venture capital-backed tech IPOs, reddit, Astera Laboratories, Ibotta and Rubrikin March and April, making it look like this year could deliver the momentum investors were hoping for in 2023. But secondary investors and IPO lawyers recently told TechCrunch that despite these four successes, macro conditions such as upcoming presidential elections and high interest rates, It means that the IPO market will not fully reopen until 2025.
This year is still on track to be better than 2023, and we’ll likely see a few more public showings throughout the year. Companies that include Klarna and She in They have engaged with bankers and appear to be close to the finish line, but their IPO timelines are still unclear.
For the most part, it may be easier to decipher who it’s not will go public this year instead of who will. Some CEOs of late-stage startups have stated outright that they will not do an IPO in 2024, while other companies have taken financial steps that imply a public listing is not imminent. These are some of the venture capital-backed tech companies we don’t expect to hit the public market this year.
- paintings CEO Zach Perret said B2B fintech had there are no plans to go public in 2024 at an Axios event in March. This echoes what TechCrunch’s own Mary Ann Azevedo reported last October after the company hired a new CFO. Plaid was valued at $13.4 billion in 2021, its most recent valuation.
- While designing unicorn figure hasn’t directly said it won’t do an IPO this year, its actions point in that direction. In May, the company held a public offer allow existing investors and employees to sell their Figma shares, if they wish, on the secondary market. This type of liquidity event generally does not occur right before the largest liquidity event of an IPO. The public offering valued the startup at $12.5 billion, less than $20 billion. Adobe was willing to paybut also higher than the valuation of the last primary round that Figma received, 10 billion dollars.
- Stripe also held a public offer for its current and former employees earlier this year. In February, the fintech unicorn announced a secondary sale that valued the company at a whopping $65 billion. Although this is less than the Valuation of 95 billion dollars The company obtained in 2021, the company is recovering its valuation. This is a sign that Stripe will likely look to regain that valuation a bit more before hitting the public market.
- AI cloud platform Data bricks It is also unlikely to be on the agenda for 2024, perhaps to the dismay of venture capital investors who last year foretold as the first company to go public. The company proposed a new 500 million dollars of capital last fall in a Series I round that valued the startup at $43 billion. While companies typically don’t raise funds right before a public listing (after all, that’s part of the IPO process), the investors that did raise in this round were crossover investors like T.Rowe Price. those are not the type of investors who tend to oppose IPOs When market conditions improve they are in good shape to be one of the first listings in 2025, if they wish.
- canva It’s not likely to go public until at least next year and the design startup will most likely wait until 2026, said co-founder Cliff Obrecht, husband of Canva CEO Melanie Perkins. Daily Homean Australian and New Zealand tech publication, in March that an initial public offering would be at least 12 months away, if not sometime in 2026. Luckily for American investors, however, Obrecht also confirmed that when the startup looks to exit to the stock market, it will. then in the United States
TechCrunch is monitoring the startup and exit markets in the latest stages and will continue to update this article. If you have any tips or advice to bring to our attention, please contact me here: rebecca.szkutak@techcrunch.com.