Tech IPOs Are Gearing Up for a Major Comeback in 2024
With the S&P and NASDAQ hitting all-time highs, rumors are swirling about the comeback of the tech IPO. Given the IPO drought that we’ve had for the past two years, many venture-back private companies are eyeing an IPO in 2024.
Some of the most talked about companies that are primed to go IPO next year include the following. Also, please note these are the latest valuations from publicly announced data and will most certainly be different when/if these companies IPO in 2024:
→ Scale AI ($7 billion)
Founded by Alexandr Wang and Lucy Guo, Scale AI is at the forefront of scalable AI solutions, significantly influencing various industries with its advanced technology.
→ Canva ($10 billion)
Co-founded by Melanie Perkins, Cliff Obrecht, and Cameron Adams, Canva is a digital design paltform, offering an intuitive platform that challenges giants like Adobe.
→ Reddit, Inc. ($15 billion)
Created by Steve Huffman, Alexis Ohanian, and Aaron Swatz, Reddit is the preeminent online community, known for in-depth discussions and high user engagement.
→ Discord ($15 billion)
Founded by Jason Citron and Stanislav Vishnevskiy, Discord is an emerging social networking site, known for its unique chat and community features.
→ Databricks ($43 billion)
Co-founded by the original creators of Apache Spark, it specializes in data and analytics, offering solutions that rival companies like SnowFlake.
→ Stripe ($63 billion)
Established by Patrick and John Collison, Stripe is revolutionizing the fintech sector with its developer-friendly payment processing services.
→ OpenAI ($90 billion)
With co-founders including both Elon Musk and Sam Altman, OpenAI is a leader in generative AI innovation, especially with its ChatGPT tool.
→ Shein ($90 billion)
A key player in fast fashion, Shein, founded by Chinese entrepreneur Chris Xu, has made a significant global impact with its trendy, affordable clothing styles.
2023 was a better year for IPOs than 2204.
According to data from EY, the number of U.S. IPOs in 2023 was up 15% compared with 2022, and the proceeds jumped nearly three times that of 2022. This was due to several high-profile deals like ARM Holdings, the British semiconductor company. In total, 153 deals raised US$22.7B, with over 85% of them listing on US exchanges.
With all the enthusiasm and press coverage, it's easy to get swept up in the hype and lose sight of the purpose of the IPO.
By tapping into public markets, these innovative companies can bolster their financial foundations, enabling them to accelerate their growth, continue to reshape their sectors, and solidify their market-leading positions.