The tech IPO landscape is poised for potential upheaval in 2024, following a year of subdued activity despite initial expectations. While 2023 witnessed several startups returning to the stock market, their lackluster debuts tempered the anticipated IPO boom. However, industry experts speculate that 2024 could offer a more conducive environment for tech IPOs, driven by factors such as promised rate cuts by the Federal Reserve and subdued merger and acquisition activity.
Market Outlook and Expectations
Lise Buyer, the founder of the IPO consultancy Class V Group, expressed optimism regarding the 2024 IPO market, citing improved conditions for venture-backed companies. She noted that some firms, facing financial constraints, may increasingly view IPOs as an attractive avenue, especially amidst renewed growth prospects and a focus on profitability.
Notable IPO Candidates
Several high-profile companies are poised to make their market debuts in 2024, drawing considerable attention from investors and analysts alike:
- Discord: The social messaging platform, valued at $15 billion in a 2021 funding round, has long been the subject of IPO speculation. Despite rumors of an imminent IPO in previous years, Discord’s market debut remains eagerly anticipated.
- Reddit: Having postponed its IPO plans due to market volatility, Reddit is reportedly eyeing a first-quarter IPO in 2024. The social media company aims for a valuation of $15 billion and has been in discussions with investment banks like Goldman Sachs and Morgan Stanley.
- Chime: With a valuation of $25 billion in 2021, Chime, a digital banking platform, enlisted Goldman Sachs for IPO advisory services in 2022. While the company denied immediate plans for an IPO, market conditions may prompt a change in strategy.
- Stripe: Fintech giant Stripe, valued at $95 billion in 2021, announced a one-year timetable to evaluate a potential IPO. As the deadline approaches, industry observers await Stripe’s decision amidst its significant fundraising efforts.
- Klarna: Despite facing valuation fluctuations, Klarna, a leading buy-now, pay-later firm, signaled readiness for an IPO following a profitable quarter. CEO Sebastian Siemiatkowski expressed a desire for a stable market before proceeding with the public offering.
These potential IPOs reflect a diverse range of tech sectors, from social media and digital banking to fintech and e-commerce, underscoring the dynamic nature of the upcoming IPO landscape in 2024.
