TechCrunch recently reported that the initial public offering (IPO) market for venture-backed tech companies is not expected to fully reopen until 2025. Despite a few successful IPOs earlier this year, including Reddit, Astera Labs, Ibotta, and Rubrik, macro conditions such as the upcoming presidential election and elevated interest rates have dampened investor enthusiasm for 2024. However, this year is still on track to be better than 2023, with a few more public filings expected throughout the year. Several companies, including Klarna and Shein, have engaged with bankers and seem close to filing for an IPO, but their timelines remain uncertain.
While there are companies that may still go public in 2024, it seems easier to identify those that won’t. Skims, the underwear and loungewear brand founded by Kim Kardashian, won’t be heading to the IPO market this year. Despite being valued at nearly $4 billion, The Information reported that Skims is not expected to go public until the first half of 2025. Chime, a challenger bank and fintech startup, has also been on investors’ IPO hopefuls list for a while. Although the company has approached bankers, it’s not looking to go public in 2024. However, Chime’s mutual fund backers have marked up its valuation by 25% in the last six months, suggesting positive growth.
CoreWeave, an AI company based in New Jersey, raised significant funding earlier this year and has seen its valuation rise 42% since then. With its recent funding round and valuation increase, CoreWeave is not rushing to go public and has its IPO plans for 2025. Sword Health, an AI-powered virtual physical therapy startup, plans to go public but not until 2025. The recent tender offer and equity funding at a $3 billion valuation indicate that Sword Health is in no hurry to enter the public markets.
Plaid, a B2B fintech company, has confirmed that it won’t be going public in 2024. Last year, the company hired a new CFO, and Axios reported CEO Zach Perret’s statement about the lack of IPO plans this year. Figma, a design unicorn, has not explicitly stated that it won’t go public in 2024, but its recent actions suggest a delay. The tender offer allowed existing investors and employees to sell their Figma shares on the secondary market, typically not a precursor to an IPO. However, the startup’s valuation of $12.5 billion shows healthy growth.
Stripe, a fintech unicorn, held a tender offer for its employees earlier this year, indicating a delay in its IPO plans. With a valuation of $65 billion, Stripe is likely looking to build its valuation further before going public. Databricks, an AI cloud platform, raised $500 million in a Series I round last fall, valuing the company at $43 billion. While this fresh funding suggests a delay in IPO plans, Databricks is well-positioned to be one of the first listings of 2025 when market conditions improve.
Canva, a design startup, may not go public until next year or even 2026. Co-founder Cliff Obrecht stated that an IPO would be at least 12 months away, and when Canva does go public, it will do so in the U.S. TechCrunch will continue to monitor the late-stage startup and exit markets, providing updates on IPO plans.
