**The 2024 IPO Pipeline: A Disappointing Reality Check**
As we approach the halfway point of 2024, it has become clear that the investor dreams of a strong IPO pipeline for the year have faded, if not fully disappeared. While four venture-backed tech companies – Reddit, Astera Labs, Ibotta, and Rubrik – successfully went public in March and April, experts recently told TechCrunch that the IPO market won’t fully reopen until 2025 due to macro conditions such as the upcoming presidential election and elevated interest rates.
However, despite the overall setback, this year still holds promise and is expected to outperform 2023 in terms of IPO activity. Companies like Klarna and Shein have engaged with bankers and appear to be nearing their IPO timelines, although the exact dates remain uncertain.
**Companies Opting Out of the 2024 IPO Wave**
It seems that it may be easier to identify the companies that won’t be going public this year rather than those that will. Some CEOs of late-stage startups have explicitly stated that they won’t be pursuing an IPO in 2024. Additionally, certain financial moves made by companies indicate that a public listing is not on the horizon.
For example, Plaid’s CEO Zach Perret stated at an Axios event in March that the B2B fintech company had no plans to go public this year. This aligns with previous reports from TechCrunch which indicated that Plaid’s hiring of a new CFO signaled a delay in its IPO plans. Plaid, valued at $13.4 billion in 2021, has decided to hold off on entering the public market for now.
Another notable company, Figma, hasn’t explicitly ruled out an IPO this year. However, its recent actions suggest otherwise. In May, Figma held a tender offer, allowing existing investors and employees to sell their shares on the secondary market. Typically, such liquidity events do not occur right before an IPO. Although Figma’s valuation of $12.5 billion in the tender offer is lower than Adobe’s reported offer of $20 billion, it still exceeds the startup’s previous valuation of $10 billion.
Stripe, a prominent fintech unicorn, also held a tender offer earlier this year. The secondary sale valued the company at an impressive $65 billion, although it fell short of its 2021 valuation of $95 billion. This move indicates that Stripe aims to rebuild its valuation before making its debut in the public market.
AI cloud platform Databricks, which many predicted to be the first company to go public in 2024, is unlikely to do so this year. Despite raising $500 million in a Series I round last fall and achieving a valuation of $43 billion, Databricks is not showing signs of immediate IPO plans. The company attracted crossover investors like T.Rowe Price, suggesting that it may wait for more favorable market conditions and potentially become one of the first listings in 2025.
**Looking Ahead: Canva’s IPO Timeline**
Design startup Canva is not expected to go public until at least next year, and it may even wait until 2026. Co-founder Cliff Obrecht revealed in an interview with Startup Daily that an IPO would be at least 12 months away, potentially pushing it into 2026. However, when Canva does decide to go public, it will do so in the U.S., providing an opportunity for U.S. investors to participate.
**Continuing Coverage and Contact Information**
TechCrunch remains committed to monitoring the late-stage startup and exit markets. Updates on IPO activity will be provided as developments unfold. Readers are encouraged to share any tips or callouts by contacting rebecca.szkutak@techcrunch.com.