The ambitions of investors for a vibrant IPO landscape in 2024 have dwindled as the year progresses into its latter half.
The early months of 2024 saw the launch of four significant venture-backed tech IPOs including Reddit, Astera Labs, Ibotta, and Rubrik, sparking initial optimism for a rejuvenated market. However, insiders, including secondary investors and IPO lawyers, conveyed to TechCrunch that the combination of macroeconomic factors such as the impending presidential election and high interest rates suggest a full market recovery is unlikely before 2025.
Despite this, 2024 is still expected to outperform the previous year, with a number of companies, notably Klarna and Shein, preparing for potential public offerings. Yet, precise timelines remain uncertain.
Identifying startups opting out of a 2024 IPO often seems more straightforward. Several CEOs of mature startups have explicitly ruled out going public this year, and others have made strategic financial choices indicating a delay in their IPO plans. Below are some of the tech firms we anticipate will not debut on the stock market this year.
Skims
The fashion label Skims, founded by Kim Kardashian, is on its way to an IPO but not within this calendar year. Valued at close to $4 billion, and despite being only five years old, it had been tagged by many as a likely candidate for a public listing this year. However, reports from The Information suggest an IPO won’t happen until at least the first half of 2025.
Chime
Fintech firm Chime has been in the IPO speculation mix for some time, especially after it deferred its public offering in 2022 due to market uncertainty. Although trending towards an IPO, The Information has indicated that a 2024 timeline is not in the cards. Positive valuation adjustments by Chime’s backers hint at a cautious optimism for its future prospects.
CoreWeave
CoreWeave, anchored in New Jersey and focusing on AI, solidified its position with a substantial $1.1 billion Series C funding round, followed by a debt capital injection of $7.5 billion. This finance trajectory, alongside insights from The Information, points towards a planned 2025 IPO. A valuation surge post-funding round underlines a strategic patience in its approach to going public.
Sword Health
Sword Health, pioneers in AI-driven virtual physical therapy, outlined intentions for an IPO, earmarked for not before 2025, as shared with TechCrunch by CEO Virgílio Bento. Recent financial moves support an agile strategy towards public listing.
Plaid
Plaid’s CEO Zach Perret communicated at an Axios event that a 2024 IPO is not planned, sustaining TechCrunch’s earlier coverage. With its valuation stable since 2021, the fintech remains a subject of IPO speculation.
Figma
Design powerhouse Figma, whilst not verbally rejecting a 2024 IPO, has made moves suggesting it’s not immediately forthcoming. A tender offer event in May allowed for secondary market sales of Figma shares, hinting at alternative liquidity paths ahead of any public offering.
Stripe
Similarly, Stripe facilitated a tender offer for its stakeholders earlier this year. A secondary sale subsequently valued the company significantly, albeit below its peak valuation in 2021. This suggests a strategic buildup in value before considering a public debut.
Databricks
The AI cloud entity Databricks is also not anticipated to list in 2024. Last year’s capital raise, coupled with the nature of the investing parties, implies a postponement of IPO plans, potentially setting the stage for a 2025 debut.
Canva
Canva’s public market debut is not on the immediate horizon, with co-founder Cliff Obrecht signaling a listing could be further out, possibly even into 2026. When the time arrives, the U.S. market has been confirmed as their choice.
TechCrunch remains vigilant, tracking the developments within the late-stage startup and exit markets, and will continue to provide updates. Should you have insights or information to contribute, please reach out to: rebecca.szkutak@techcrunch.com.
This article first appeared on May 24 and has since been refreshed on June 11 and August 7 to encapsulate additional company insights.
Compiled by Techarena.au.
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